Sales Platoon: S1:E8 | Unexpected Entrepreneurial Pursuits with John Crespo

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John Renken and John Crespo discuss their journey from military service to entrepreneurship. Crespo, a former army serviceman, shares his experiences as an automated logistical specialist and a diverse career path from manufacturing to banking. He learned the importance of resilience and adaptability from military service and how exposure to diverse industries can spark entrepreneurial pursuits. 

They emphasize the need for determination, flexibility, and a willingness to learn in transitioning from service to business. The Sales Platoon podcast explores the intersection of strategy, storytelling, and success in the business world.

Highlights:

{01:10} Military Service and Transition

{09:58} 9/11

{12:00} In the baking world

{13:30} Entrepreneurial Journey

{23:45} Trying entrepreneurship again after a failure

{32:15} Tax Tips

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John Crespo Bio:

John Crespo is a seasoned business development professional with over 12 years of experience in helping businesses thrive and succeed. With a passion for seeing businesses grow, John has dedicated his career to partnering with companies on a deeper level to achieve sustainable growth and success.

His journey in business development began in the financial industry, where he started his career at JP Morgan Chase in 2010. After gaining valuable experience, John relocated to Clarksville, TN, in 2018, where he assumed the role of Director of Business Development for Fortera Credit Union. During this time, John realized his true calling lay in working closely with small businesses to help them become sustainable and fundable.

Driven by his passion for supporting the local community, John boldly decided to leave the corporate world and founded CFD Services Inc., a company dedicated to assisting small businesses in achieving their goals and reaching new heights of success.

John is actively involved in various community initiatives outside his professional endeavors. He serves on the board of Recover Our Sons; a non-profit organization focused on mentoring young men in the community to prepare them for leadership roles in the future. Additionally, he is a board member of the Clarksville Hispanic American Family Foundation, where he contributes to advancing the welfare of Hispanic families in the area.

John’s commitment to his community extends to his personal life as well. He and his wife are proud parents to five children, including one boy and four girls. Together, they enjoy spending quality time outdoors, whether camping, visiting the beach, or embarking on day trips to explore local attractions.

With a wealth of experience, a passion for business growth, and a dedication to community service, John Crespo continues positively impacting the business world and the community.

Links:

https://cfdservicesinc.com

https://www.linkedin.com/in/johnpcrespo

https://www.facebook.com/john.p.crespo

https://www.instagram.com/johnpcrespo 

https://www.mysalesplatoon.com

 

Sponsored Links:

https://therootbrands.com/product/zero-in

https://newulife.com/hk/en 

https://trufinco.com 

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John Renken

Welcome to the sales Platoon podcast, where strategy meets storytelling, and we’re right at the crossroads of the battlefield on the business front, I’m your host, John Rankin, bringing you the tactics, triumphs, and truths from the sales trenches. In today’s episode, we will do a bunch of decoding of the transition from service to business.

 Our guest today is John Crespo, a great friend of mine. John, how are you doing?

John Crespo

I’m doing great, John. I’m looking forward to this interview, man. I’ve been, you know, we work in the same area. So, I get to hear you out there chatting with other people. And I was wondering when my time would come, and here I am. Man, I’m excited.

John Renken

And you’re one of the first guys.

John Crespo

Yes

John Renken

This is for me. Yeah. So, you know, you bring that up, so we share an office. We’re in two different locations for the recording because, you know, I’m not like Sean right now, Sean Ryan or, you know, Patrick Bet David with her podcasting room where we fly guests. And he had, so we had to do some manipulation to make this one work. When did you serve? Where did you serve? What did you do?

John Crespo

Okay, let’s go back in time because it’s been long. It was a long time ago. So, I joined the army straight out of high school at 18. I graduated high school. My mom said I didn’t know what I wanted to do with my life. You have to figure it out. You have to go to college and join the military, but you won’t be doing what you’re doing, right? 

So, I was on the path to nowhere, so I said, alright. I’m going to join the military cause, uh, you know that my high school was like a vocational, military high school. 

John Renken

OK.

John Crespo

Yeah, it was Navy-focused, but I wasn’t into the Navy. Because I went to that high school, I could go into the army as an E3, so I said, why not put extra cash in my pocket? So, I joined the. I went to basic training in Fort Leonard Wood. I would have joined as a 92A, an automated logistical specialist. I was the. PLL clerk in the motor pool assigned to infantry and Calvary divisions. It was great. My first duty station was in Germany.

John Renken

Oh, rough life.

John Crespo

Oh my God, in the 90s, man, there was really. It was the tail end of Bosnia, right? The whole Bosnia thing is happening between Bosnia and the Gulf, right? So, I was in it was in there. So, we spent some peacekeeping time in Bosnia, but that was the extent of my deployments.

John Renken

Right.

John Crespo

But in Germany, it was the life I loved Germany. Germany was great, and from Germany, I went to Fort Campbell and stayed in Fort Campbell until I ETS. I never. I never signed up for RE, so I just ETS out of Fort Campbell. I did six years total, but then I got out. And went back home to New Jersey. That’s my military experience.

John Renken

What’s yours? So, when you ETS, what was your transition experience like because you got out in ‘99? So, there wasn’t. There wasn’t a skill bridge program or a CSP program.

John Crespo

There was no transition for people getting out. All they said was that the guidance you got was you’d never make it out in the real world. I don’t know why you’re getting out. 

So, you know, I’m the type of guy. Please don’t throw that challenge out at me. I’m going to go. I’m going to prove you wrong. 

I didn’t have any type of transition. You know, the kind of programs that they have. Today, I think, is amazing. You know it to help prepare our transitioning soldiers. But yeah, that wasn’t there. I just got it. I just got my checklist of where I had to clear once I was done clearing. See you later.

John Renken

Yeah. So, when I got out in 96, they gave me my DD214 and said don’t let the door hit your *** on the way out. You know, same. Things are very much not friendly to getting out.

John Crespo

Nope. Nope.

John Renken

Did you have to do A cap? No. OK, I don’t remember if a cap was required for us or was just optional because they helped me do my resume when I got out. But you know.

John Crespo

I think that may have been optional in our time. And yeah, I don’t think I took that. It may have been more available than when I was getting out. I don’t quite remember, but I don’t think I took advantage of it.

John Renken

So, you move back to Jersey.

John Crespo

Back to Jersey.

John Renken

How long did you stay in Jersey?

John Crespo

What 25 years in Jersey, after getting out of the military, I was born and raised in New Jersey, so I left New Jersey to join the military and then came back and out of the army and went back.

John Renken

Yeah. How long did you stay in Jersey, though, after the army?

John Crespo

To New Jersey. Oh, until I left, too, until I moved. Here to Clarksville. And I moved to Clarksville in 2018. So, from ’99 -I did a National Guard in New Jersey when I got out, I did National Guard, but from ‘99 to 2018, I was in New Jersey.

John Renken

OK, so what brought you back to Clarksville?

John Crespo

While I woke up, man, I woke up so. You, it’s funny. The story is about ten years ago, my wife’s nephew. Who was an Old Navy guy? He’s a Navy veteran. I came to visit some friends here in Clarksville and decided to stay. 

So, when I found out, he was here. I said, hey, I want to visit Clarksville. That was my last duty station. When I take my family to visit Fort Campbell, I show them around and all that stuff. So that was in about 2016 when I made my first visit. Yeah,

I loved it when I came out because you remember Fort Campbell in the 90s.

John Renken

OK.

John Crespo

This whole area was. The whole area of this Clarksville area was just nothing but a cornfield. Yeah, nothing but cornfields. So far, you smell like a cow, cow manure, and everything else. And back in 2016, over 100 and 6070 thousand people were here. So, it was it was. It’s. It was a growing city. You could see it. So. Plus, the housing pricing and cost of living compared to New Jersey was just ridiculous. No brainer.

John Renken

No, right. Yeah. No. So, at what point do you start your own business?

John Crespo

Oh, OK, my entrepreneurial journey started, and I’ve read many businesses. I’ve run several businesses. So, my entrepreneurial journey started around 2015, 2014 and 2015.

John Renken

So, when you got out, what did you do between 1999 and 2015?

John Crespo

Between 1999 and 2015, I went to work, so I started working in uh manufacturing. The part of New Jersey that I live in is big and has a lot of manufacturing facilities there. 

So my first job was in a manufacturing facility, just running machinery, and like there was, it’s very healthcare. I was manufacturing in that area. So it was, uhm, loreal; the makeup company ran they had a contract with Polo Cologne. So, we ran their polo Cologne.

John Renken

Right.

John Crespo

For you. So, I did that for several years and then worked for another warehouse. I worked a lot in the manufacturing logistics world for about five years, and then I went to school simultaneously to manage my GI Bill. So, I went to school and got my bachelor’s degree in business. From there, I went to work, and I transitioned to banking. It was a night-and-day transition from manufacturing logistics into the financial world. I joined the financial world and the banking world in 2007, I started working in the financial world with JP Morgan Chase, and most of me was there.

John Renken

Oh wow. Cody Sanchez used to work there, too.

John Crespo

Yeah, yeah, yeah.

John Renken

Asset management. So. So, did you know that you would return to Jersey when you got out of 99? Go right into manufacturing just like everybody else or, you know, where you lost? How did that play out?

John Crespo

I was lost. I was lost when I got out of ‘99. I knew I was returning to Jersey but didn’t know what to do. Yeah, I come from a family line of hustlers, right? I just knew my grandmother was a hustler. She always found a way to make money. Whether it was creating some yarn doll figures and selling them or selling food like she was a hustler. My mom worked 3 or 4. Jobs to raise us, so I didn’t know exactly what to do when I. I got out, but I knew that when I got to Jersey, my first order of business was finding a job.

So., I went and hit out all the employment agencies, whatever I could to get my stuff out there to get myself a job. So, I got a job fairly quickly. I didn’t have a thought process where I would join manufacturing or logistics, right? I just needed to. I just… I needed a job.

John Renken

So, you get out ‘99, so you know, just two years before 911. Was there anything in your journey as you were transitioning and looking for employment when 911 happened to bring you back? Was that a temptation for you?

John Crespo

100%. I was working, so I guess it’s being in the area of New Jersey that I was at. I saw everything happen. So, I saw the towers get hit, and the world shut down. My part of the world and where I lived were shut down. I lived on the Jersey Shore, and you could see Manhattan there.

Now, so we were; we went to the once everything was shut down; we drove to the beach and looked at Manhattan. You could see the towers burning where the towers where you could see the ferry; there were ferries ferrying people from New York to New Jersey to get them out of that area of Manhattan. You were, we were seeing all of this, and it was just anger.

I just started getting this… This … my blood just started boiling that someone would dare do That to us. And I was ready to go right back in and wreak havoc.

John Renken

So, what stops you from going?

John Crespo

My family. 

So, I was with my wife. We were just getting started in our kind of journey. I was building a family at that point, right? Right at that point. 

So, it was like there was me and UM; my conversation with her was, hey, look, I’m. I think I need to go back in. She’s, you know, was totally against it. And I get it. You know, she was totally against it. She’s like we’re. We just got to this new place, and we’re starting to build this up. It’s just it’s going to flip our life upside down. And I was like, well, you know, this is not a joke. What happened is this is serious somebody. We’ve been attacked, you know? Who knows? Nobody knew what was going on at that time. Like, we didn’t know what was going to happen. We thought it would be the end of the world, man. You know, when you attacked us like that, we thought we were going to go nuclear. It was a big conversation, but She talked me off the ledge, and I did not. I wanted to go back in, but I didn’t.

John Renken

Yeah. So, you make this transition into banking. What were you doing in banking in 2007?

John Crespo

I started from the bottom in the banking world, so once I got my business degree, I joined JP Morgan Chase as a banker. So, I was one of those guys that you would go into the branch, and they would help you open your bank account, get your credit card, and ensure you had all that stuff. I was. I was that I was willing to do all the paperwork to get you an account.

John Renken

Right.

John Crespo

That was my foray into banking, but with Chase, I got to do every level of banking, so I went from being a banker. From there, I became a mortgage. They called the mortgage specialist back then. So, I did mortgages for a couple of years. From there, I became a branch manager and started running some branches. 

And then I, you know, I just stayed as a branch manager for a while, for several years with Chase, and that’s where I got my exposure to working with small businesses cause, as a branch manager, your job is to be that small business representative for the banks.

John Renken

So you transition out in’99 … 9/11, which happens when you work a job. You transition from manufacturing to finance and banking, where you start to get the itch for doing your own thing. When’s that take place?

John Crespo

Well, it was when I became a branch manager. I’m being exposed to a lot of small business owners, right? I’m conversing with many small business owners looking for a credit card, trying to get some checks cashed, or setting up bank accounts for their businesses. So, you get to have conversations with these entrepreneurs.

A lot of them have some amazing stories to tell. You know, it is just listening to the stories and many of the sacrifices they had to go through to create their business and some of the struggles they are going through to manage and run their business. You know that that that started like that fire inside of me to say hey, look, you know that that is where I’m going to end up. I’m going to end up over there. 

I like grabbing my desk, creating it, managing it, being responsible for that, and just for my future. I like that. It’s calling my name.

So, the more I spoke to business owners, the more fire grew inside me before I took that leap into trying something out.

John Renken

Yeah, that’s actually why we do this podcast is seeing is believing for most vets that we’re a very skeptical, sometimes very cynical, and dark-humor type of tribe of people. 

So, the whole purpose of the podcast is to talk about the transition, to show them because right now, in the culture, the average income is like 20/25 bucks an hour. But through entrepreneurialism and specifically sales and business, you could be making starting 65 seventy $500,000 a year.

So, what was your first dip into your own business?

John Crespo

My first dip was a trucking company.

John Renken

You started the trucking company. No. How have I been in your office? And, like, I didn’t know you did a mortgage. I didn’t know you did trucking like I’ve been in your office for almost a year and a half.

John Crespo

My resume is deep, man. My resume is deep. But this is a this is a. Crazy story. So, my wife, my wife has two brothers and their truck drivers, their owner-operators, so they own there, they own trucks. You know they drive for another company.

John Renken

  1. Right.

John Crespo

Needs and UM where we are in New Jersey. It’s the uh, the ports. The ports of entry for containers coming in from overseas. That’s it’s a major port of entry. For that, right so. There’s a lot of trucking in my area, and I had exposure to trucking from working in the warehouses and logistics. When I first got out of the army, I had exposure to that, so I understood the industry but didn’t. Oh, I didn’t know it, right?

So my brother-in-law, they approached me one day. I was doing mortgages for Chase When they first approached me, I thought I knew nothing about trucking. I’m not interested. I don’t want to start a Trucking company. They wanted to start one. And they didn’t want to be owner-operators anymore. They wanted to own their own company. Sure. Umm, and hire owner-operators.

So, it took a couple of years, around 20 end of 2013. I said, you know, I was kind of going. We went through the financial crisis around 2008 and 2009 when the housing market collapsed. And all these banks started failing. There was a. It was a stressful time in the financial world. It is a very stressful time. 

So, I was like, you know, I don’t know if I can, if I want even to be part of this, this career path anymore with all the stuff that’s going on; I think I want to, you know, my mind was ready to ready to try something else. It was open to try other things. 

So, they approached me again, and then I said, you know what? Let’s do it. So, I just jumped on the Internet and started researching how to start a trucking company and the rules and regulations around running a trucking company. 

So, I dug in and researched the industry seriously to figure out how to get something like that off the ground. And we did it. I got the dot registrations, my MC number, and our tax ID. I did everything myself.

And that right is just going through that process. That brought a true appreciation of what somebody goes through when starting a. Business, right? Because you can have people that have a passion for doing something, you know, even while you’re in the military, even active duty, like, there’s a lot of active-duty soldiers doing stuff on the side they’re building up. They have an investment portfolio aside from real estate—a lot of them. Get into real estate. A lot of them have other businesses on the side. So going through that process, I got to see, you know, exactly what entrepreneurs go through. And that was like a man; this is, it’s rough and tough, but you are controlling your destiny. I love it. I love it. 

So, we built this trucking company and our first. Probably our first year and a half week we made it, we it was a. How do you say what? What’s a 1,000,007-figure business? It was a 7-figure business.

John Renken

How long did it take you to get this?

John Crespo

In top line, top line distance.

John Renken

How long did it take you to get to 7 figures? You started in 2013.

John Crespo

Yep, by the middle of 2014, we were an A7-figure business. It was a top-line business. So, here’s where I made a mistake, and I would say we made a mistake. My partners and I made a mistake because we priced our moves wrong. 

So, this was a huge mistake. When you’re when you’re starting a business, you have to understand pricing, right? You must understand how much you will charge for your service or product. You have to do some serious research into that. And I didn’t do enough. 

So, we used the pricing model that owner-operators use. Who’s not what the trucking company uses? Yeah. So we were, yeah. So even though we made a million over $1,000,000, we lost money in the business. So, we didn’t make any money out of that business, and it just boggled my mind. We figured it out the mistake and we started correcting the mistake, but then we were in a really big hole trying to dig ourselves out in the industry with some major overhead, such as trucking. So, it was a serious learning to finish.

John Renken

How much do you think you lost for that mistake?

John Crespo

About over 100,000.

John Renken

OK, not bad.

John Crespo

About 150, 

John Renken

It could have been worse

John Crespo

Yeah, it could have been way worse. It could have been way worse. So, I mean, I’ve gone through everything starting that business that I think any business will go through. That’s what can go wrong. Like I’ve gone through everything wrong in that business that any business goes through. We’ve had trucks get into accidents, and in the trucking business, when trucks had trucking accidents, those are major. The truck lives over on the Interstate. That’s a major. That’s a major issue, you know. 

We’ve had to go through several of those processes and deal with those, figuring out how to navigate that financial crunch. And it was just dealing with owner-operators that were dealing. You know, so who’s like? It was an experience, but my education from going through that was priceless. The loss. I took it on the chin, and like that, that education stuck with me for my next bench.

John Renken

  1. What was the next venture?

John Crespo

The next venture was a detailing.

John Renken

Before we get into the next venture, did you sell out on your portion of the trucking company? Would you tell me how you managed that transition?

John Crespo

Yeah. So, we liquidated the trucking company there. If there were no money gains, we. We all lost money out of the process. But we did end up liquidating because. There’s one thing you must consider when starting a business, especially if you’re starting a business with a family, right? That things can go wrong. Relationships can get strained, especially if you’re losing money. relationships can get strained, and there was a strain on our family relationships, you know, to this day. We’re still going through it they weren’t the business guys I was. Just learning this business, you know, so it was hard to, you know, get everybody on the same page. 

So, there was a struggle. 

So, we decided, hey, the best thing to do is just look at what states this and part ways and call it a loss, and we’ll work to recover whatever we can in any way. It was the 2015, the end of 2015.

John Renken

OK, alright. It was so liquidated. And then what’d you do? What’d you switch into?

John Crespo

Liquidated the business. 

John Renken

Because now you have the bug, right?

Now you have the bug working for yourself.

John Crespo

Yeah, this is funny because I went back to banking after that. So I went back to chase.

That’s what I love. I’ll never say anything bad about the company Chase, and I like their CEO, Jamie Demon. He recently said some amazing things in the news that I saw that video truly appreciated. So, they took me back after I tried this venture. To help me get back on my feet because I was struggling. 

We lost all of our money. I had no money for my family, so. They took me back, like, alright, here you manage these two branches for us. So I did that, but I couldn’t get back into it. I couldn’t get back into it being an employee. Yep. Right. So, it was a struggle for me.

 So, a couple of years later, I would say 2017. I would chase. To start, believe it or not, a mobile detailing company. Mobile car detailing company. That was my next venture. I was always a car freak. I still am. I like to keep my cars clean. 

John Renken

That’s right. Now, with our weather.

John Crespo

Yeah, exactly. Exactly. So this is. But I like to keep my car clean, so I always clean my family’s and neighbors’ cars. And then I started making money from it, and I just. I just got into it, and I saw that the niche of mobile detailing at that time was becoming popular. 

So, I started a mobile detailing company. 

I did do pretty good with that. As a matter of fact. Yeah, I could support my family with mobile detailing, and I did mobile detailing until I moved out to Clarksville, TN. I moved out here mobile detail. I was detailing out of here, so I brought the business.

John Renken

So when did you sell that business? How much do you make out? How much did you sell it for?

John Crespo

I didn’t sell the business. I just stopped. I just stopped. Yeah, so I started just transferring. Alright, so when I moved out here, and I’ll give you why I did that, it is when I moved out here that my wife said we could move on the condition that.

I found steady employment out here, so I got a job because after coming out here to visit and seeing the change and the difference in lifestyle between Clarksville, TN, and New Jersey, I was adamant about leaving New Jersey. I was telling my wife we can do great things if we leave. Now, if we leave New Jersey and go To Clarksville, TN, I could just start fresh. I don’t care what it is, but I want to leave New Jersey to move there like I was written. She’s like, the only way I will agree to this move.

If you find steady employment because you can’t just build a detailing business, you can’t just move your business out there and make the same amount of money. Night and day, right, and making that kind of move. I said OK. I came out here for a visit just to do job prospecting and found a job at SunTrust, which was SunTrust in Nashville. 

So, they hired me to manage the music Rd. Branch.

John Renken

OK.

John Crespo

Which was Downtown Nashville is in the heart of youth to grow.

John Renken

Right down, down, right in the middle of everything.

John Crespo

Like all the producing companies, all the music producers banked with them. So, it was all I was like, this is. God’s saying this is this is for you. This move is for you. So that is my move out here. But I also brought detailing with it. So, I was working for the bank and detailing from our house, brought my trail, and did mobile detailing from here in Clarksville for the first year.

John Renken

So now you have a business consulting company is basically where you lend your CPA. Yeah, you do taxes. How do you go from being at SunTrust, a mobile detailing company, to starting your own … I think you started as a tax accountant first, right?

John Crespo

No, not at well, I. I started as a business consultant, so I was doing business consulting business, consulting on the side, and then? I added tax. The tax was the first thing I added.

John Renken

Oh, OK, alright.

John Crespo

Yeah. And then I went in and added the bookkeeping, the payroll, and everything like that, but that came about when. UM. I worked a year in Nashville in Music Row, then transitioned to working from Clarksville with the Four Tera Credit Union, a local credit union here. It took over their business to park. So, how did I get into consulting as a manager in these institutions? You are a small business consultant. That’s what you do. Your job is to consult small businesses, especially with Forterra; I was their business department’s director of Business Development. 

So, my job was to get out in the community, have lunch, and learn, you know, share information with the small business owners. Teach them how to register their business. Teach them what paperwork you need for financing. 

So, I dug deep into the business world—extra deep working in that position. And many businesses just started reaching out to me—to help them kind of on the side, so at my side hustle was helping small businesses. Either get registered or make sure they have the proper regulatory filings that they needed to be able to get their business off the ground, and you know, so I was, I was doing that on the side for a while before I decided, you know what, this is something I want to do full time.

John Renken

OK, alright, so. I remember when you were working at Forterra because I met you right at the tail end of your time. 

So, you’re working at Forterra, your business director. You start doing that on the side. That’s about a two-year window from when you moved from Jersey to here. Your wife wants you to have a stable income and stable employment as a condition of moving. How do you convince her to let you go at it again?

John Crespo

I gave her two years of stable employment. I gave her two years of bringing the paycheck to the house, like, here’s two years. It was 2 1/2 years of me bringing a steady paycheck to the house. But she saw … what was good was that I was doing the consulting on the side. For about a year, right? Still working. It was a year, and she saw that. It was it was bringing in. It was starting to bring in, bringing some revenue, and, you know, in that time, I said I have to start the conversation early with my wife to let her know, you know, what my hopes and dreams are for our family, for our, you know, for our future, for wealth and everything like that. 

And so, I started the conversation. But it looks like this is building, and I think I can take this to the next level if I add some additional services that everybody needs. Because then, you know, we’ll be able to create an area where we’re helping businesses completely in every aspect of their need. 

So, she was she was like, I’m just going to watch… I’m going to sit down and watch you. Do you. I’m going to sit down. I’m going to watch it. And if it looks like it’s doing something, then. Then go for it. 

So, she’s my ride-or-die. I have to say she holds me accountable. But she’ll let me. She’ll let me go out there and try some patience. Yeah. Exactly. Because she knows I can be. I can be a person of impulse, you know. So, she must reel me in sometimes. And I need that for sure.

John Renken

So, I have you come and speak to our sales between class. You know, transitioning from the military where you’re told where to be, what to wear, what to eat, what to do, everything’s micromanaged for you. You don’t have to have a brain, right? 

So now they will get into 1099 or W2 sales, but the game has changed. What I use you for in that context is to talk about tax implications. When you know, because as a W2, if you’re making 75K, your income is your income, you’re not seeing, probably at 75, you’re probably not seeing 15,000 of it. That’s being taken out of your check, but your check is your check when you get out and become a 1099—all those changes. 

Why did you decide to start on the tax side of things, and where did that all … cause you and me to do some things with taxes? So yeah, how did that become a part of your business, and how do you use that now in serving businesses?

John Crespo

Yeah. Well, I was doing taxes. That was just something I would do. I could tell my family’s taxes. And then my friend’s taxes, you know, because I just. It was just. I thought it was something that felt pretty easy and comfortable doing so. When I wanted, when I got into the actual. Tax preparation business for small businesses and individuals, you know it was it was a pretty easy transition. The only thing that changed was the software that I used.

So, I went from, let’s just say, using TurboTax or software like that to. This is so well. When you know me getting into that, diving into that. It came from walking along with business walking along businesses prior and seeing their struggle whenever they got a tax bill—not knowing or understanding why they have to pay the government. You know, how come they were, you know, they made this much money but had this many expenses, but they still owe money to the government? You know, so a lot of these questions started coming. 

So, it was just a matter of saying, you know what, let’s answer those questions. So, let’s create a service that will help answer those questions and guide my clients so that they’re not just getting surprised at the end of the year with their tax bill, but we can prepare and do it. It’s more of a tax. Versus tax preparation, you know I’m a tax, and I believe in tax planning and tax strategy instead of just tax preparation. 

So, it’s more like how I can prepare ourselves to understand what will be expected at the end of the year by understanding what our business structure brings. Regarding tax implications and the difference between a. W2 with 1099 and LCF Corporation and all that stuff provides regarding taxes, we want to do some tax time.

John Renken

Yeah, it’s, you know, I tried to tell everybody this. There’s a difference between going to H&R and getting your taxes done. This contrasts with working with somebody like you, who will tell you how to avoid tax burden legally. Right. 

So, I am more of a wealth consultant. And I think that when you look at it, our two most expensive bills are probably our mortgage and taxes. 

Based on your income, bracket taxes are probably larger than your mortgage. You know, when I look at. Well, well, you did. If you’re making 100K in taxes, you are probably surprised by your actual mortgage; somewhere in that period, you get to 90 K, and you’re probably paying more in taxes than a mortgage, right? 

And it’s so important because the military tells what to do, when, and how to do what to where. I think now you get out; the tax gain is different. If you made 100K in the army, for example, you didn’t make 100K because some of that was tax-free. 

Some of it was taxed, and then you get out. Think 100K, and then you get. 7075, whatever ends up being because you lost that 20 K of tax-free money and BA, whatever, right? Yeah.

John Crespo

What I look at is what I like about it. Soldiers transitioning and the fact that we’re going from, you know, our life scheduled out for us. Everything holds; we’re told what to do—all this, this, and that too. In the regular world where you know you’re the, you’re responsible for your life at this point, right? 

You go from not being responsible to being completely responsible for everything that goes on. You decide what’s going to happen. I look at taxes when it comes to that as a PMCS manual. Right when in the military. You have a PMC as your vehicle. You get PMCS, your equipment; you get PMCS everything, right? So, you know it will function when you need it, right? 

So, you have a PMCS in your life. You have to PMCS your taxes to know what to expect when it’s needed, right? So hey, it helps when I’m speaking to veterans or soldiers already, you know, soldiers in the transition process to say you’re it’s not necessarily a lifestyle switch. Right, your lifestyle is going to change, but it’s not. It doesn’t have to be a light switch. You can view it in a way that kind of helps the transition go smoothly. 

So, you can view it in a way of saying what I, as a veteran, ‘ve learned, we’ve learned so much about. Preparation. We learned so much about, you know, being ready, always being ready, always being alert, always being, you know, on the go. You can use that mentality in the real world. That’s why so many veterans become successful entrepreneurs. Yeah, right. Because they’re progress oriented. Yeah. 

So, we used that process orientation mindset to the specific task. Let’s just say taxes, and we can say all right in taxes; how do I understand this? How do I understand this burden that’s going to hit me? And then how can I PMCS my life so that I don’t? I’m not surprised. And I’m running towards it. I’m running. When do I need to run? It comes to the tax time.

John Renken

Yeah, and. One of the things you and I have talked about in the past and still talk about is the idea of having that side hustle that 1099 on top of your W2. So, the federal government doesn’t take as much of your info. Right, talk about that for a little bit.

John Crespo

Yeah, yeah. Yeah, for sure. When you look at an opportunity to bring up 1099 types of life or just have a little side business, right? Having a side business opens the door for so many benefits that come to you. 

So, our tax system is A2 tier. The tax system, right? You have your employment tax, and you have your business tax. Those are the two rights the government likes to have. This will create benefits on the business side because the business generates growth right now. If you own a business, the potential is you’re going to hire people, you’re going to hire employees. If you hire employees, you get a tax benefit for hiring employees. 

The government wants you to hire people. They want their economy to thrive. If you own a business, you’re going to invest in property. You’re probably going to purchase some real estate or investment. Property so the government wants people to build, and they want people to purchase assets because of those assets. That’s when upbringing will drive revenue to the economy, so living on this side of things, you’re benefiting the economy, which is the government. I appreciate it, and they give you the opportunity for credits, right? 

So, tax deductions. That’s why a business owner, or 1099, would even say 1099 is a 1099. You’re giving all of your money upfront. Right. You take all your deductions. That goes into running your business. You take that off the top end and only pay tax on what’s left over. Right versus W2 versus working for working for a company? Your tax is at the top, so you take your take home. Pay is after tax, so you get your check. They take the taxes off the top, and then you take everything home. After taxes. Two different tax systems, right?

 So if you suppose you’re working in the if you have a W2. And you have a side hustle on the side that, let’s just say you have a rental property or some other type of side hustle you can take deductions off of, right? That will lower your income on the W2 side. Then you’re taking advantage of the taxes and how they are. It was meant to be. Right. You’re building wealth. You’re growing your economy by investing by having some type of business in a side hustle, and you’re an employee paying into the tax system, but you can take advantage of those tax benefits.

John Renken

It’s good, it’s good. It’s important because the average American pays between 8:00 and $10,000 in taxes that they don’t need to pay. Yeah, you could start. It’s my favorite movie clip. Yeah, I’ve shown it to you before. I always laugh when I see it. It’s from the accountant with Ben Affleck. He’s like, tell me about the necklace. And she’s like, I make these and sell them at church. And he’s like ma’am; you might have what the IRS calls a small home-based business. You. Know and then.

It’s gone through deductions available for them to decrease their taxable. Income, you know, it’s such a powerful tool. Courtney Epps has a TED talk on this where she talks through the financial burden of taxes and how we can legally and ethically pay less. And I love that part of your business. And what you do if somebody’s listening today and they’ve got. The next questions were business questions. They’re considering starting their own business. How? How could they get a hold of you?

John Crespo

Oh, I’m. I’m all over every social media; my website is iscfdservicesinc.com. You’ll probably have a link to the show notes, but I’m on Facebook, Instagram, and LinkedIn. I’m not on TikTok. I used to be, but I’m not because I don’t know if I will get on there, but you can find me anywhere. 

You know, just reach out to me. Send me a message, and we can link up and have a conversation. I’d love to sit down and just hear your story and find out where you’re going. You know where your struggles are and how we can support you, so it all starts with our initial contact. So, reach out to me on any of those mediums, and we’ll get together.

John Renken

Yeah, and it doesn’t matter what state they’re in, right? You can do all 50 states.

John Crespo

All 50 States Puerto Rico and Guam. Yeah, it doesn’t matter.

John Renken

Yeah, as long as they’re a territory.

John Crespo

Yeah, as long as they’re territory.

John Renken

Or serving in the military in Germany.

John Crespo

Yes. Yep. Look, we’ll make it happen.

John Renken

Awesome, man. Hey, man. Thanks so much for your time today and anything you want to say, as we’re kind. Of peace out.

John Crespo

No, man, thank you for the opportunity again, and you know any soldiers out there that are transitioned or any veterans that are listening to this, you know, just know that you know you’re part of society or a group, right? That brings so much of it to our world, and you know, and don’t let don’t let the struggles of this world. Stop you because there’s always somebody out there that’s willing to help. There’s always a resource out there. You just have to get it.

John Renken

That’s good, man. Alright, buddy, we’ll see you whenever you decide to come to the office if it’s not snowing.

John Crespo

Already. Yeah, man, I’ll be there. I’ll be there shortly.

John Renken

Talk soon.

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