AI in music: the new playbook for artists

0:00 spk_0

Now, I bet you didn’t start your business to do taxes. Good thing Block Advisors did. Block Advisors by H&R Block is your one-stop shop for small business support, taxes, bookkeeping, payroll, and more. Join the more than 2 million small business owners who trust our experts year after year. Let us handle the details so you can focus on what you do best. Visit blockadvisors.com.

0:24 spk_1

While I was in Vegas, I had an opportunity to be on a show called Celebrity Boxing.And at the time, everyone was calling me crazy, was saying, you know, don’t box. You know, you’re a DJ. What are you doing?And I took the opportunity. I lost a lot of friends in that process, which was interesting.

0:51 spk_0

Howdy y’all. I’m Elizabeth Gore. Welcome to the Big Idea from Yahoo Finance presented by Block Advisors, built by H&R Block. As the co-founder of the small business funding platform, Hello, Alice, it has always been my mission to help ensure entrepreneurs have the tools they need to succeed. So let’s cowboy up.Today’s big idea question is, what does the future of music look like with AI in the mix? Our industry focus will be music and personal branding.Y’all, streaming accounts for about 70% of total music revenue, which is nuts. And music streaming alone generates over $20 billion annually. So we’ve got to pay attention here. Joining me to talk about this today is Justin Lewis, the DJ and entrepreneur extraordinaire. Now, I love music. I love all kinds of music. One minute I’m George Strait, then I’m listening to Lupe Fiasco, and you can round me out with Harry Connick Jr.The music industry has always seemed kind of complex to me and really difficult on the artists themselves. Um, I was just the other day with Kenna. He’s, um, a Grammy nominated artist, piano player, incredible, and he has the cusp on AI, and he, he actually said that he thinksAI is going to bring the power back to the artists. So, you know, it’s a tough question. Every musician, DJ, and composer have to be entrepreneurs, so talent has to go beyond the notes and gravitate towards contracts and license and fundings. Oh my gosh, it’s a lot. So what is that mixtape and cross section between AI, art, and accounting for these musicians? Let’s find out with Justin.Mr. Justin, welcome to the Big Idea. It’s so glad to have you here. I stalked you on Instagram. You were so generous to reply because I love your brand. I love your style.

2:39 spk_1

Thank you.

2:39 spk_0

And this all started, you hit the road at 15.

2:42 spk_1

Tell me. Yeah, it’s been a journey. It’s been a long journey. It’s been about a 20 year journey and I’m just happy just to be able to still do what I love to do sinceI was a kid and now that I’m here, especially in New York City, the Big Apple, it’s only right to come and show love and support to the ones like yourself who have also paved the way with your incredible career.

3:07 spk_0

Well,Now, if my 15 year old said, I, I’m going to take off and uh follow some musicians around, start managing them, I would be like, No, ma’am. But you did it and you built not only your, your business, but relationships over 20 years. Tell, tell me that moment that you took off and then what that led to.

3:29 spk_1

Yeah, the biggest moment for me was Howard University. So for those who don’t know about Howard University, HU you know.DMV. Yeah, um, HBCU and I had the opportunity of DJing there in 2010.In front of about 75,000 people for their homecoming, Howard Homecoming. It was a big, big event.And from that event, it gave me the opportunity to go on my first tour. And from that tour, it took me all over the country. Um, I’ve been pretty muchEvery hot spot that you can think of here in the United States and I’ve been able to play at these incredible venues. So it’s been a ride.

4:15 spk_0

But it’s been your ride, but you, as much as your own career, you started helping other musicians day one. Tell me about that other track that was right besideit.

4:26 spk_1

Yes. So I’ve been behind the scenes for most of my career.My marketing company, Metropolis Marketing, we’ve been we’ve been registered as a marketing company for about 10 years now. We’re based in Los Angeles and we work with the biggest entertainers and media for hip hop specifically, but we also work with a lot of cultural brands as well. Um, Peter Marco is a brand that I would consider cultural, a crossover brand between urban luxury.Gallery Michael, um, for those who aren’t familiar, Rodeo Drive, they have the largest Picasso archive in the world. Um, we’ve been working with them for about 12 years. Uh, rest, rest in peace to Mr. Michael.Rose Star Motorsports, Doctor Amir Wahab.The list goes on and on and on, but we’ve been established in the game for a long time. Martin Katz, um,Yeah, tons of people that we’ve been working for for a very long time. So it’s been a ride.

5:32 spk_0

How did you go from a kidGetting in the music industry to landing some of these enormous relationships. I mean, that is a lot of small business owners’s dream,

5:42 spk_1

right? I went broke.Uh, right after I went to LA, honestly, I had a lifestyle that was ridiculous. I had everything, the cars, all that stuff, and I just went broke and I found myself in a position where I had to utilize my relationships in order for me to build something substantial. So that’s where the marketing company came in and I started to work with, um, at that time, it was Trey Smith. It was Will Smith’s first son and I met him through his mother at an event, um.And from there I started to work with other talent. That was my first person that I was able to kind of you know get in contact with that was in the industry, the way that I was trying to get connected in the industry.And from there I ended up meeting Peter Marco, um, which is a jeweler I just named, and he gave me an opportunity to work with him for over 3 years at that time to do pretty much all the jewelry for the biggest celebrities, um, in the hip hop world at that time. So Floyd Mayweather, um, when he was in town, he dropped about $10 million with us.Um, really big high transactions. We weren’t dealing with small guys.

6:54 spk_0

And you’ve kept those relationships. How do you, from a business standpoint, I can see how graceful you are personally. So I can see how you keep those relationships personal. But also as trends change, technology changed, you’ve kept these relationships representing these brands. How do you keep up with that and teach them how they need to evolve?

7:18 spk_1

So I have a good team. My team is very important to me. We finally have a system in place where not only the clients that we’ve had over time, um, can adapt to the new system, but we also have a system to where everyone is getting the same amount of recognition with their brands.So what we usually do with clients is we give them the opportunity to express themselves in their own creative way and we stay out of the way because I feel like anybody who has a brand should never have someone telling them how to manage or micromanage their brands. I feel like their brand should be authentic to the person. But what we doWell is brand strategy. So we suggest things such as how your brand can evolve, how it can grow, what partnerships, what deals to take, what not to take, and build out a timeline.I like to say timeline of success because we put the pen to the paper and we also put a date on it. So there’s always an objective to reach and go for.

8:29 spk_0

And you, your own brand, which is what first attracted me to both your Instagram and so on. Tell me how you developedit.

8:39 spk_1

This came out of boxing, so I ended up being a professional boxer for about 2.5 years.While I was in Vegas, I had an opportunity to be on a show called Celebrity Boxing. And at the time, everyone was calling me crazy, was saying, you know, don’t box. You know you’re a DJ. What are you doing?And I took the opportunity. I lost a lot of friends in that process, which was interesting because I realized that those people didn’t really want to see me win. It was more or less they were scared for me to win.

9:11 spk_0

So you didn’t lose friends, you lost people.

9:13 spk_1

I lost people in that process. And it’s interesting becauseWhat I just said sometimes can be missed, but we can have people in our lives that want the best for us, but subconsciously they’re scared for us to do it. AndIt’s a fine line between being able to accept a person in your life who thinks like that and not self-sabotaging yourself in the process.

9:43 spk_0

Well, sure, sure. Especially if you thought you valued their opinion. But I will say, being an entrepreneur and getting punched in the face every day kind of matches. So you know it’sIt’s tough being an entrepreneur, right? There’s highs and lows. You hear, no, you have to duck and cover. But anyway, so back to the brand. So you’re doing the boxing world and then how did you develop that brand?

10:05 spk_1

SoI actually just started it out of my own brain. I just was like, I’m going ape andAnd I thought of ape season at that time and I built the brand around giving myself confidence because I was wearing a lot of other brands and I was sponsored at the time with Project Rock. So big shout out to the Rock. Thank you. But I didn’t feel the power that was coming from my inner self. And I wanted a brand that people could relate to because the ape is our most closest ancestor in the animal kingdom. We share around 99% of their DNA.And I wanted people to feel powerful when they wear the clothes, not just wearing it for the logo or wearing it because it says this brand, but having a deeper meaning behind it. And in terms of culturally, it also gives people in underserved communities the opportunity to feel like they’ve been seen.I think this brand is something that amplifies the grit and the rawness of those urban environments. And I think this is one of those things that people can relate to without feeling like they’re compromising themselves. Well,

11:15 spk_0

it’s a beautiful brand and I think you and I were actually talking when we sat down aboutWhat to wear and being your most authentic self. And is that if you were to give our small business owners advice right now and and they’re going between 2 to 3 skews, they can’t decide, there’s a million people giving their opinions.What would you tell them how to make that final decision on that final brand?

11:43 spk_1

The biggest thing is when other people start to appreciate it. You just need one. That was what happened with me. When I started this brand, I immediately had people in the gym wanting a shirt and I knew that that was something that people could resonate with from day one.That would be my thing. It doesn’t have to be a lot of people, but just one person that recognizes that this is something cool or interesting. And then from there, develop it, grow it, if it’s something that’s really passionate to you. For me, this is just aUm, my way of giving back.You know, I’ve, I’ve been a person who’s been into fashion my whole life and this is finally my way of giving back to the industry to give people something that can make them feel like they are someone important.

12:38 spk_0

All right, Justin, hold that thought. We will be right back after a quick break on the Big Idea.So you are, you’re an awesome juxtaposition between physical craft and then absolute AI revolution. So, I mean, I would consider you an AI futurist in music. And you have a very unique perspective on it. Tell me about

13:16 spk_1

that. Yeah, I think AI is going to change the music industry. I think AI is here to stay becauseWhen we look at technology, everything advances at a certain point in history, and we’re at that point where music has to evolve. We went from analog to vinyl to to CD to digital, and now we’re in AI.So if we’re not going to adapt to the times, then what are we doing?

13:49 spk_0

Do I have to get rid of my mixtapes or can I keep those?

13:52 spk_1

The cool thing about AI is that it learns from us. So the mixtapes are already in the AI. It knows about it before we even have to say anything.And the crossover for me is being able to see how far we can create without limits with the technology versus looking at the technology as something that is inauthentic to the creativity process of human thinking.

14:23 spk_0

What is your advice for entrepreneurs in the music industry? How should they be adopting AI?

14:32 spk_1

Right now in the music industry, I think my advice to any artist is be authentic to yourself. The reason why is because AI music will always be AI music and original music will always be original music.And I say that becauseAs an artist who is passionate about singing or passionate about poetry, you don’t want to turn that over to a machine.So I don’t support that if that’s whatAn artist or a poet wants to do.They don’t have to conform to the AI revolution. There’s still going to be tons of people that want that type of content or that type of umI guess you could say talent. They want that talent. And there’s going to be there’s going to be another group of people, maybe the newer generations, the Gen Z’s, the alphas who are going to come in and say, We don’t care whether it’s real or not.

15:33 spk_0

So to you, 11 does not cancel out the other.

15:37 spk_1

One doesn’t cancel off the other, but over time it will. Yes. So over time, within probably the next 10 to 20 years, if the original artists do not adapt, then they will beUm,The market will be so oversaturated with AI music that the real talent won’t even beseen,

16:00 spk_0

right? So you, um, have circled, come full circle, and you’re back making music again, and you just seem to light up. I mean, tell me, tell, well, first of all, of everything you do, you’re an investor, you manage brands, you still are boxing.You run, um, you DJ, but when I ask you of all those things, what is your true love? And you come back to music. So tell me about that.

16:29 spk_1

Yeah. Music for me was my gateway when I was a kid. Growing up as in a single parent home, music gave me an outlet to be able to express myself in a way that I couldn’t express myself in the real world.And for me, music has always been self-expression, but I can also see how music affects everyone in the world. Music is a universal language. It doesn’t matter what language it is. If it has a good beat or if it resonates with you, most of the time people will enjoy it. I’ve always called myself a mood designer when I was in the music industry, especially as a DJ, people would say, you’re a mood designer because I could read a room and I can also play the music that fits the room.Whether it’s a bar mitzvah, whether it’s a nightclub, whether it’s a quinceanera, it doesn’t matter what it is, I’ve done it. And I’ve done it at a small scale all the way to a global scale, to a tour scale. And one thing about music is it doesn’t change. It always stays the same. It’s unbiased. You know people may not like the person who does the music, but if the music is good.is unbiased.

17:38 spk_0

Unbiased. And you’re also now investing in other companies, which is exciting. What’s what’s your formula on how you choose your portfolio companies?

17:48 spk_1

So my portfolio has changed over the years from small investments to big investments. And my formula is actually what Usher said the other day. And Usher was saying that he likes he likes to work with brands where he sees passion in the founders.And I’m exactly the same way. I don’t like dealing with brands anymore where I don’t see the passion in the founder. If the founder’s not passionate about the brand, if they’re not willing to go hard day and night for the brand, work 24 hours, give up on the vices that they have that they could give up on, spending their spare time in whatever that craft is, then I’m not interested because I feel like in terms of being a founder,You have to love your brand. You have to be willing to sacrifice everything for it. And that’s what I look for when I look to invest in companies, because sometimes a company can be nonprofitable and with a little M&A.That can turn a company upside down in 6 to 12 months. You know, and I’ve seen that with passionate founders. I have never seen it with a founder who hasn’t been passionate. that

19:02 spk_0

hunger.

19:02 spk_1

I’ve never seenthat.

19:05 spk_0

Do you have a favorite right now?

19:07 spk_1

Yeah, I would say my brand, but outside of my brand, I would say I like to support um the John Hope Project, the Hope operation. So a big shout out to John Hope. Um, I think he’s an awesome public figure for the community. I think that John has done a lot in terms ofWanting to see people do well in the community.

19:30 spk_0

Yeah, we, uh, Hello Wallace, we partner with them and so a big shout out to the small business owners listening to seek out Hope Centers because they are an incredible resource to everything from filing your taxes to understanding employment law. They’re the best. We’re on the same page there,absolutely same page.

19:50 spk_1

That’s awesome.

19:51 spk_0

Yeah, we, um, you said something before I wanted to pick back up on, on you said that you have aAn interesting balance when you’re picking your portfolio companies. You said one’s a bit gangster, the other one is more intellectual. Tell me that again.

20:07 spk_1

I like founders who can wear what I’m wearing now and walk into a multi-million dollar meeting and be themselves. I love that. And I also like a founder who is clean cut, who knows how to dress and look apart, but also can go toUh, Monte Carlo or go on a yacht or go to Yacht Week or or go to Sotheby’s. I like that as well. I think that a founder, the best founders have both. They’re they’re able to intertwine those two. They can go to the Kentucky Derby and then they can go to a Jay-Z concert.

20:44 spk_0

Leave thehat behind.

20:46 spk_1

I like that, you know, go to the Masters and then after the Masters go to NBA All-Star Weekend. I like that type of stuff. Right,

20:54 spk_0

right. It’s kind of a, you have to be that way in business. Know your audience. I like the mood setting. I like that. Um, so I think when people look at you, look at your Instagram, all we see is success with you.Because you work your butt off. But we talk on this show about dirty unicorns, and it’s important to me that people see mistakes. So tell us about a mistake you’ve recently made in business that we can all learn from.

21:23 spk_1

I lost a lotof money. I did. I lost a lot of money and it was because it was emotional decisions. So I learned a lot from that experience because nowI can have a little bit more patience with the market, especially with trading.

21:39 spk_0

It’s you lost it in trading

21:41 spk_1

in trading.Yes. And being someone who has experience, but got caught up in something so small and lost so much.I can definitely say that I learned just to kind of chill out and just have more patience.

21:57 spk_0

Yeah. And is that, I mean, going to our business owners and earlier we had Kat Cole from AG1 on and she was calling it emotional data that needs to transition to intellectual data before you make the decision. What do you mean by take a beat, take a breath? Is it, is it just take a little bit more time to assess? What did you learn from that?

22:18 spk_1

I would say so. I would say.Being more patient with picks and also being more patient with the market. And we can see that from even today. South Korea’s market opened crazy today, right? Japan’s market’s booming. It’s just things like that that just don’t make sense, especially in these times with the Strait of Hormuz and everything that’s going on. We’re going in our 4th week of that and the markets have just never seen it. As far as history.4 weeks is kind of the max. After this, yeah, it’s going to be kind of wild out there. It’s going to be the wild, wild west. So definitely being more reserved and more emotionally regulated during this time. It’s really good advice. Really good advice.

23:05 spk_0

I want to go back to your schedule because you know small business owners and entrepreneurs, they, I think time is probably their most difficult commodity.I agree. And, and they are extremely time poor and, and that, that doesn’t change as you get more successful, but you do get more help, I would say. So you brought up how important your schedule is. What, what’s your advice for a small business owner who has got so much going, maybe they’re still the, the CFO and the cook and the marketer. How do you, how do you?Prioritize what to spend your time on. That seems important to you.

23:45 spk_1

Absolutely. So my schedule has been set for over 5 years. So since the pandemic, I’ve changed my schedule a lot. My schedule focuses a lot on self-prioritization.

23:57 spk_0

OK. What does that mean to you?

23:59 spk_1

Self-prioritization for me means being able to make sure that everything that I’m doing within my day has an objective and something to do that is moving the needle forward.So I eliminate everything that doesn’t move the needle forward.

24:14 spk_0

OK.OK. And is that moves the needle forward both financially, personally, professionally? What does that mean?

24:23 spk_1

That’s all of the above. Yes. So for me personally, my routine in the morning, I like to wake up early. If I’m not up by 2 a.m. to do my workout.Lord Jesus,

24:37 spk_0

that’s familiar You’re Dolly Parton. Did you know that she gets up at 3a.m.?

24:42 spk_1

I like to get up early. Yeah,

24:43 spk_0

that’s not getting up early. That’s getting up at night. OK, keep going. I’m shocked by this. Keepgoing.

24:49 spk_1

Yeah. So I usually wake up and I get my workout in right at the top of the morning. The reason why I do that is because it gives me the opportunity to spend the rest of my day without having to worry about the workout. Wait, I

25:00 spk_0

have to back into. What time do you go to bed?

25:03 spk_1

Well, it depends. You know, it just truly depends.

25:09 spk_0

Sometimes I don’t if you’re, you’re in control of your, you’re not traveling. What time are you going to bed?

25:12 spk_1

No later than 10.

25:13 spk_0

So you don’t need a lot of sleep.

25:15 spk_1

No.

25:16 spk_0

No. You and Dolly.

25:17 spk_1

Yeah, I go.

25:19 spk_0

I go. OK, so sorry, 2 a.m. you wake up, you work

25:22 spk_1

out. But I will show you the sleep schedule. SoAfter the workout, I usually have my meetings in the morning, so I knock out my meetings. After my meetings, I’ll eat something light for breakfast and I’ll take a nap. Just take a power nap, you know, reset,

25:39 spk_0

recharge. That’s your secret sauce.

25:42 spk_1

Yeah, you’ve got to take power naps. I think everybody does. They need a few in

25:46 spk_0

the day. And I love me a nap. If I know I’m going to nap.I also feel more confident in the morning about what I can conquer,

25:55 spk_1

right?

25:56 spk_0

So nap, yep,

25:57 spk_1

nap, and then after the nap.Um, right back to work. Yeah, just get right back to work. And that work can be different. Usually my meetings in the morning are client based.My stuff in the afternoon is either I’m in a studio working on my own personal music. I’m either doing something for H season. I’m either going back to the gym to do some boxing training, but that’s all work to me. After that, come back, I usually have a meal prep set that rotates every week. Some days I meal prep on Sundays, some weeks I meal prep on Fridays. It just depends on my schedule.So everything has a set time. Everything has a slot in place for it. I’m very organized. I’m a Virgo.

26:42 spk_0

I love it. So I’m going to go all the way back then to that business owner. It sounds like your advice is to only schedule things that are moving an objective forward because that objective could be different for everyone, but it’s moving it forward. And how do you know if it’s not? Do you just kick it to the curb? Do youDo you learn fromthat?

27:03 spk_1

I think time reveals. Even with relationships too, time reveals. For me, I like to give everything the benefit of the doubt and I think that’s how we should be in anything. If we don’t know, it’s not going to harm us not to see what it is or to try it out. So yeah, I mean for me, I’m willing to invest the same amount of energy into a project or to a relationship.As much as I see that there’s also reciprocation in it, and there’s a common objective at the end of the day, and I feel like that’s fair.

27:37 spk_0

So, um, you are a big believer in the future of Las Vegas, which is where you’re based. And um tell me about, because there’s a lot of small business owners there.And entrepreneurs who are taking advantage of the sports teams coming in and spend a minute on the business community in Vegas.

27:56 spk_1

The business community in Vegas is growing. I wouldn’t say that there’s a great business community. I would say there’s a great casino industry, but business community is definitely growing.I would say that Vegas is the melting pot of the future. It’s a place where people are going to have to adapt to.Um, because of the economic growth that is coming with MLB, with NBA, NFL, hockey, it’s just a city that has to be adopted to. Before it was just gambling. You go there, you have a good weekend, what stays in Vegas happens in Vegas or what happens in Vegas stays in Vegas. That has changed. Now people are coming for business.You’re going to gamble a little bit, play a little bit of poker. OK. After poker, we’re going to go eat. We’re going to talk business. You know, OK, we’re going to go to Sofia, we’re going to go to a hockey game, go to a WNBA game, and then we’re going to talk business at the Bellagio or at the Wynn. That’s how Vegas has transitioned. Nobody’s really coming in now just to go to the casino or just to go to a concert. Most one percenters, they’re coming in.Yeah, they’ll hang out at the club or whatever. I mean, we pop bottles, but after the bottles are popped, yeah, we’re going to talk business.

29:17 spk_0

And the conference community there, I mean, now it’s hosting so many conferences. I just think it’s a great place for small business owners to think about what are all the services outside of those buildings, right, that have an opportunity for them to succeed, right?

29:35 spk_1

Well, the convention industry in Vegas will always be strong.The convention industry.has nowhere to really go for that amount of people. We have an international tourism that comes in from all over the place all year round. So yeah, Vegas is convention style, convention centers will always be in high demand for sure.

30:08 spk_0

If you’re self-employed and thinking about retirement, you might feel a little overwhelmed.Where do you even start? Don’t worry, we’ve got you covered. Today we’re talking about retirement and healthcare planning for small business and owners and freelancers. Here’s why planning matters when you work for yourself. There’s no employer sponsored retirement plan waiting for you.That means it’s up to you to create a strategy that works for your business and your future. The best place to start now, learn about your options. Today, we’re talking about this with Latasha Randall, strategy and small Business Program manager at Block Advisors by H&R Block. Latasha, welcome to the Big Idea. We’re so happy to have you.

30:49 spk_2

Thank you so much for inviting me. I am excited to be here today.

30:53 spk_0

Well, we all need you. I’m telling you, our small business owners in Hello Ellis, I mean, the thousands of tax questions we get every day, um, and you’ve spent 23 years with H&R Block working from the field to corporate. I mean, tell me about that journey.

31:09 spk_2

It’s been an amazing journey. I often tell people, kind of like small business owners, sometimes you fall into a decision that, you know, leads to things that you had no idea it would lead to, but I started as actually a tax professional, um, looking for a part-time job.And the amount of financial acumen I developed working for H&R Block, the things I began to learn, um, especially in the area I was in, an underserved neighborhood, I realized that people really lacked financial literacy and especially when it came to taxes.And I really fell in love with the ability and opportunity to educate people, so I stayed. And you know, it led into leadership positions and that continued to grow. And after a while I had the opportunity to transition to corporate for a corporate role.And so when you get to kind of combine the field experience with working behind the scenes, it’s a great mash up, I guess you could call it. And you add that to the fact that I also am a business owner, so small business has been the perfect place for me to land here at H&R Block and Block Advisors.

32:13 spk_0

All I can think of is the opening of the movie Accountant with Ben Affleck, uh, when he’s he’s working in that strip mall, but helping all those people, um, and then of course, the rest goes from there, butUm, what have you seen? I mean, you’ve been in this so long. What, what has the shift been over time on how small business owners talk of and and attract towards taxes?

32:37 spk_2

So I think there was a while ago, people were really afraid. They didn’t know what to do when it came to their small business. They were like, I’ve kind of started this thing and I don’t know what’s going to happen.And so you fast forward now in the age of technology, and they can find so much information at their fingertips, it kind of shifted from people being afraid and not knowing what to do, so now there’s so much information they’re trying to sift through and determine what’s accurate, what’s real, what applies to me, what can I deduct.Uh, you know, sometimes people are getting their advice from Google, sometimes it’s TikTok, you know, and then sometimes it’s a true tax advisor. So that’s kind of been the biggest shift in how people are getting information and knowing what’s true and what’s applicable tothem.

33:25 spk_0

Well, but still the, the, I understand the most common question you get is what can I deduct? Is that right?

33:33 spk_2

Absolutely, the most common thing is what can I deduct, and I mean, we hear everything from our content creators saying, hey, can I deduct this outfit and makeup I purchased to produce this video, to can I purchase a vehicle in the name of my LLC and deduct it as a write-off, so we hear itall.

33:51 spk_0

And, and, uh, I, I want to know the answer to those questions.

33:56 spk_2

I mean, here’s what I tell people, when it comes to your clothing, the IRS has kind of pretty specific guidelines, but oftentimes with content creators, it can get tricky. If it’s clothing that you could wear that could be considered for everyday wear, it’s usually not going to be a tax deduction. But if it’s got a logo on it or it’s something specific that you would only use in the production of that content, then it’sabsolutely a write-off.

34:20 spk_0

See, that’s some expertise right now. Um.You, you’ve, I’ve, I’ve read you say that you should not think of taxes as once a year. This is a real everyday objective. What do you mean by that?

34:34 spk_2

So that’s like the biggest piece of advice I give people when they say, what’s the best advice you can give. If you think of your taxes as a once a year event, you’re often going to miss deductions, you’re going to run into surprises at the tax desk, especially when you think about life’s changes that happen all throughout the year. Every life change, just like every business change, could potentially create a change.In your tax return. And you don’t want to wait till the end of the year to find that out. Um, and as a business owner, cash flow is really super important. And so if you set yourself up, say, quarterly payment, but you have a quarter where you make significantly more or less, you want to adjust the amount you’re paying so that, A, if you need to pay less, that gives you more cash flow in your business for that quarter, but if you need to pay more,Or that minimizes the chance that you’re going to get a penalty for underpayment at tax time. So I tell people, at least check in each quarter, but really think about it anytime there’s a change in your business, you get a new contract, you’ve got to hire employees, you decide to go from your basement to purchasing a storefront, like, all of those are things that you should be pausing to speak to someone and say, how will this impact my taxes?Well, even down to when you purchaseequipment.

35:47 spk_0

Well, sure, and, and, well, and the big beautiful bill has changed a lot of that, so you do need to pay attention quarterly, you know, I, I do think, and I certainly do, you can get overwhelmed, right? Um, that’s so much. So where, where would you tell a small business owner to, where, where do I just start?

36:05 spk_2

You know, here’s what I tell people. You have to really think about for your business what’s important to you and what you want to invest in. When it comes to your taxes and the amount of tax laws that exist and the amount of compliance that you could be up against, this is an area I recommend people outsource. So go to a tax advisor, don’t try to go it alone. Um, and you know, here’s what I tell people, you can go to the IRS, you can find an, um, advisor who’s actuallyregistered, you know, with the IRS, someone that you know is legitimate, that you can trust. Obviously we have brands like ourselves, Block advisors here at H&R Block, where we have wonderful tax advisors, but I tell people just, it’s an investment that’s worthwhile for your business to invest in an actual tax advisor, just go ahead and, you know, outsource that. Don’t try to run that on your own and figure it out.

36:55 spk_0

Well, you you’ve suggested, you know, usingTax forms almost as a checklist. And as a person who loves to check off lists, to me, that sounds quite functional.

37:07 spk_2

You know, here’s what I tell people, especially when you first start your business, most people start, they’re a solopreneur, as we call them, they’re, it’s just them and their business, they’re often filing on a Schedule C for sole proprietors, and they go, they’re they’re looking for these fancy checklists, and you go through all of these checklists, and then you get to the tax return, and now you’ve got to match up all of your receipts to the categories on the tax form. It would be easier.To just look at the tax form and say, oh, it has advertising, it has meals, it has vehicle expenses, it has licenses, it has professional fees, it’s telling you all of the things that you can deduct, and how to categorize them so that you’re ready when it’s time to file your taxes.

37:50 spk_0

Yeah, that’s um that that almost makes my blood pressure go down, right, instead of up the way you’re describing it. Um, how should small business owners rethinkAbout taxes, because sometimes they really think that, hey, big corporations, they focus on them more. This is not for me. How do they rethink that?

38:11 spk_2

Here’s what I tell people, when you file your taxes to the IRS, you’re going to be held to the same requirements as that corporation. If there’s income that’s required to be reported, it’s required to be reported. If there are deductions you’re entitled to, you want to claim your deductions. So don’t get caught up in the size of your business because you’re still a business nonetheless. And so regardless of the size, you want to make sure that you’re aMeeting compliance, what are the requirements, what are the things I’m required to do for my business, but also what deductions are available to me. I don’t wanna leave any money on the table just because I thought it only applied to a certain type of business. And even when you think about things likeEmployees. You may say, well, I don’t have any employees, so a lot of these things don’t apply to me, but you still got to have health insurance for yourself, you still got to prepare for your retirement, like all the things that that big company does, you still have to do for yourself.

39:05 spk_0

That’s right. That’s right.So, um, so maybe a corporate mindset in a small business environment is the way we need to think about this. Um, well, you’re still a serial entrepreneur yourself. I mean, you’re, you’re kind of the, the triple threat, and so I’m curious how running your own e-commerce business, I mean, how are you advising clients?

39:26 spk_2

You know, one of the things I get to tell people is I wouldn’t give you any advice that I wouldn’t personally take, and I get to say if I’m giving you this advice, I’ll probably

39:34 spk_0

try.

39:36 spk_2

Yes, absolutely. But you know, kind of one of the things I tell people is staying organized, getting organized and staying organized is really important. Even as someone who’s been on the tax side and knows all the things that I need to do, when I first started my business, that was the biggest challenge I found was staying organized for tax time, because you get to the tax desk and you realize I’ve got all of these things I need to deduct, but if you haven’t taken the time throughout the year, again, thinking of taxes as once.year, then you’ve got a shoebox of receipts, or a plastic total receipts that you’ve got to go through. That’s a daunting task and that’s usually when you say, I’m just gonna file an extension and do it later. So I tell people it really is important to think about your taxes throughout the year. Everyone doesn’t want to stop every month and do those things, but there are so many cool apps and things out there that are expense trackers and they’ll do it for you.Take the time, get yourself set up. It’s early enough in the year, like it’s March, so it’s, you know, March, April, it’s not too far into the year, go ahead and start doing those things now, cause like the app I use, when I scan a receipt, because I purchased things from the same place all the time, it already puts it in the category. It knows where it has to go. So when I’m ready to file my taxes, I can literally press one button.And get a printout of all of my receipts already categorized, but that organization is critical,

40:54 spk_0

critical, and then, and then it gives you more time back. You’re not in tax time debt, maybe I’ll call it right before then. Um, let, let’s talk 401k because I think a lot of people also equate that with corporate, right? And as I’m thinking about, um, an individual and what are the options like a solo 401k.What mistakes are people making or how could they think about that related to tax?

41:21 spk_2

So, one thing that I see often, especially in people who are married, or, you know, um, they have a partner or someone else that they can rely on, they often say, well, I don’t have to worry about that because my spouse contributes to 401k or my partner contributes to a 401k and you have to think about, you know,Just like it takes both incomes when you’re working, when you retire, it’s probably going to still take multiple streams of income. So the first thing you want to do is not shortchange yourself and, you know, by not preparing for your retirement. But 401ks are the plans that most people recognize because they’ve heard them from being an employee.And here’s what they don’t often know is that they can create that traditional 401k, whether it be for their employees or themselves. If they’re the only participant and they don’t have any other employees beyond their spouse, they can create what’s known as a solo 401k.And now it does involve um engaging a financial institution because they’ll have to set up a press fund for the planned assets. There’s certain formalities they’ll have to follow, but it works very much like a 401k where you can save money for retirement. Um, but there are other options out there as well, so they can look at a simplified employee pension, which is a set IRA.They can even look at a savings incentive match if they have employees that allows them to actually match, you know, deductions for employees. So there are a lot of options out there. But like I said, that 401k is the one most familiar with, they’re most familiar with because they’ve had one or know someone who has. And like I said, really it’s all about thinking about what does it take to set up this plan. Do I want to work with a financial institution, or is it something I’d rather just file an IRS form and set up myself?

43:03 spk_0

Well, I love that because uh on Hai Wallace, I push small business owners, several things in the early days. Pay yourself as soon as you can. I, I do think business owners wait too long. 2 is set up your retirement as soon as you can. And then 3 is, is security. You have to think about, you know, security, legal, all those infrastructure things that aren’t sexy. So I appreciate your advice. Um.The last thing I’ll say is healthcare piece because that is a, that is a required piece of, of America in business. How, how would you structure that and what’s a big concern for entrepreneurs around that and deductions?

43:40 spk_2

But the first thing I tell them is, don’t forget your health. Don’t forget that you need healthcare,

43:45 spk_0

because as an entrepreneur, we have to take care of ourselves.

43:49 spk_2

Exactly, and think about it, if something happens to you, what happens to your business? So you’ve got to make sure you have healthcare so that you’re getting all that preventative stuff taken care of to minimize, you know, risk down the line. But here’s what, you know, a lot of people again think about. Obviously if you do have a spouse or a partner and you’re covered under their plan, maybe you feel pretty secure in that.And that might be OK, that might be perfect for you. But, you know, if not, um, it’s not, there’s nothing wrong with saying, hey, I need to get a plan for myself. They can go through the federal marketplace to search for insurance, um, depending on the state they’re in and where they live, there may even be a state exchange. But the important thing is for them to research, understand what is it going to cost me.What does it cover for me? And then in the end, it is a tax deduction for you. So if you’re paying for health insurance for yourself, that’s an above the line deduction. I don’t have to meet any special requirements, I can just deduct it right away from my gross income. So that’s, you know, the benefit in you’re taking care of yourself and also creating a deduction for you.And then if you’re somebody who’sUm, approaching retirement, you’ll want to think about, like, if I’m closer to the age of 65, when do I need to sign up for Medicare, you know, all of those things become really, really important. But like I said, I think the biggest thing is, don’t get caught up in, oh, insurance is just for the big companies to provide. No, you should be making sure you’ve provided an option for yourself as well, and like I said, you’ll be taking care of yourself, and you can claim a deduction for it on your taxes.

45:20 spk_0

Well, Ms. Latasha Randall, you have just been so helpful. We are so grateful, and I’ll just repeat that you said to treat taxes as an everyday event, not once a year. Make sure you also focus on yourself, which means healthcare, retirement, and figure out through a checklist what you can deduct. Thank you for coming on the Big Idea.Thank you for having usFiling taxes, feeling overwhelming, you are not alone. Block Advisors by H&R Block has your back with real experts who make small business taxes simple. So take a breath, help is here. Visit blockadvisors.com.Howdy y’all. Welcome back to The Big Idea. I’m Elizabeth Gore. We’re jumping back into our conversation with Justin Lewis. I mean, what would you say to your 15 year old self who’s going to leave home and go out touring? What would you say to that kid rightnow?

46:26 spk_1

Just be yourself. Just stay authentic to you because my entire career, I’ve always had people telling me what I should be. And recently, within the last few years, I’ve just decided to do my own thing and to be myself.SoIt’s funny how we can spend half our life or most of our lives being someone that we’re not.And to finally find yourself later, to say, Oh, OK, this was not who I was. Even if I was successful, this wasn’t who I was. Most depression and most things come from that, from us trying to fit into boxes and trying to be accepted to other people. Well,

47:10 spk_0

you made a veryBig shift in the way you do things. You were, can I call you an introvert? Is that fair? Introvert, very behind the scenes, no self-promoting, and you made a conscious shift there. Tell us why you made this shift, and then, and then I want you to give a bunch of us introverts advice on how to not wear ourselves out. But first tell us about the shift.

47:38 spk_1

The shift happens when you’re not appreciated enough.Because over time, especially most introverts, I would consider them to be empaths.You give yourself away most of the time. You’re giving yourself to everyone around you and there’s nothing left for you at the end of the day. So my advice is to make sure that you’re spending time for yourself, investing in yourself to give yourself some time because that’s not selfish.What’s really selfish in my opinion, is giving your whole time away to everyone else because now you’re you’re empty to be able to receive. So that would be my advice to introverts, is to do something for yourself and stop giving yourself away to everyone around you who’s not giving you any energy back.

48:26 spk_0

And how did that shift?In the business. Do you see yourself, your own persona now as a product?

48:34 spk_1

Yes, yes, yes. Over time, doing the same thing for a very long time, people do begin to look at you as the brand and the product that you wear. So reputation is extremely important for those who are watching. Reputation and relationships are extremely important.So when you get to this point, like yourself, we’re both in the same boat here with brands.We have to embrace it and just say, OK, well, if people are going to know me as this, thenAccept it. I don’t want to change anyone’s opinion about if they see me as a DJ, they see me as a DJ. If they met me later in life when I was more successful after music and I started my companies and they see me as an investor, OK, great. You see me as an investor. But I accept anyone who remembers me in my career, even the people that knew me before I had anything.It’s funny because they treat you different at different levels, the people that know you. The people that didn’t know you when you didn’t have anything, they’re comfortable with coming and just tapping you on the shoulder and just you know saying whatever to you.And it’s interesting because the people who meet you after you get success.They have more respect for you, even with the success. Um, and I think that’s where the distance comes in between the haves and the have-nots, because once you become successful, there’s nothing really relatable to the unsuccessful. And all the people that you’re friends with and even family included, revolve around circles of success.And I’m just speaking for my personal, my personal self, um, and what has happened to me over the years. I’ve, I’ve lost all my friends. I don’t have any friends that I grew up with that I’m still in contact with. I’ve lost family members that are jealous and envious of my success. I’ve lost business partners. I’ve been kicked out of companies I’ve founded. I’ve hadYou know, money lost to people taking from my businesses. I’ve learned a lot of lessons during this journey. But what I can say is thatIt’s it was all a part of the process.And most of the people I meet now, they’re exactly the same. All of my friends who are super rich, who have the yachts, who have the private jets.Most of their stories are no different. And I think that’s the thing. Especially in the multimillionaire industry, once you become a multi-millionaire, most of us had to hustle and it wasn’t easy. It was hard.Now I will say I’ve been to some places where money, there’s been old money in play. They we’re talking new money here for me, but where there’s old money in play, and there’s still a silent respect.But the difference is is that the things that go into getting the new money.It’s difficult.

51:35 spk_0

It’s getting punched in the face. It’s boxing, right, man? It is boxing. Well, you’ve brought so much wisdom today andIf you, uh,If you told everyone to listen to what we had to say today and come up with your own one big idea, what would it be?

51:54 spk_1

Dream big. Dream big and dream big and dream big and dream big again. Yeah, don’t stop dreaming ever. I would say that for anyone watching, if you are a dreamer, dream big. Never stop dreaming. The only thing you have in this life is a dream. That dream could be anything. It can be you starting your own business.It can be you doing something you’ve never thought you could do before. It can be running a marathon. Anything you do, dream big. And another secret.Everything that I do.I always push myself to the next level.Impossible is possible. All these things that you can tell yourself is extremely important. Self-validation is extremely important. Telling yourself how to succeed or you’re going to succeed. Self-affirmations, all those things, keep those close to you. Don’t let anyone steer you off your path. And like I said, chase your dreams and dream big.

52:50 spk_0

Well, you’re a blessing. Thank you for coming on the Big Idea. And you’re going to teach the rest of us. We’re going to keep watching you dream big. Absolutely not, do,do, yes.At the end of each episode, I like to give a shout out to a small business who’s doing amazing work. Today, we go full circle with Justin’s favorite brand, Ape Season.Ape Season is a streetwear brand rooted in mindset, identity, and elevation. At its core, Ape Season represents a mentality tapping into your raw and focused, unapologetic drive to evolve, build, and dominate your space. The brand blends bold aesthetic with purpose-driven messaging, often.Using the ape symbol as a symbol of strength, instinct, and transformation. It’s less about clothing as just fashion and more about clothing as a statement geared towards individuals who see themselves as ambitious, self-made, and constantly leveling up. Check it out at apesZN.com. Today, my shout out is to Savoya Boutique in Waterboro, South Carolina.You go and get those cute clothes and go tell Tammy Lawton hello at SEABOA boutique.com.Thank you to Justin for coming on the show and thank all of you for joining us. We hope you’ve learned a lot. This has been a big idea from Yahoo Finance. You can come say howdy to me at any of my social channels at Elizabeth Gore USA. Please make sure to scan the QR code below to follow Yahoo Finance podcast or check us out at the Big Idea wherever you get your podcasts. I’m Elizabeth Gore, as my grandma always said, hold your head up high and give them hell. See you soon.

54:38 spk_3

This content was not intended to be financial advice and should not be used as a substitute for professional financial services.