When I first started business someone said to me profit is a dirty word! I never understood it then and I still don’t now. I can only assume this person meant it in the way that he doesn’t make enough however the way it was said was more along the lines of “huh there’s no such thing”
How to make profit in business was one of the most used phrases entered into google in 2019 and whilst it’s not a walk in the park to make profit it’s also not rocket science.
Profit is your right as a business owner and like so many small business we need to be mindful that we own a BUSINESS here, we DO NOT own a JOB.
I challenge business owners often at the end of their financial year to multiply there overall income and divide this by hours worked. It can often be a real WAKE UP call to business owners when they realise they have been working for a wage for so long! often a very poor wage at that and in the process missing out on vital family time and relationships.
As business owners who likely live and breathe their business every waking hour we MUST know our numbers and must be charging appropriately in order to obtain a 25% profit minimum. That’s the benefits and perks if you like of owning a business.
Taking profit at the “right time” is also very important because sure as sh** you will spend this money elsewhere IF you don’t withdraw your dividends.
With a clear “profit first” approach approach here at Trade Coach we will advise what most business coaches and certainly most accountants will not and that is to WITHDRAW your money for YOU and your FAMILY and enjoy the fruits of your hard work. If that means you can’t pay for your business coaching this month then SO BE IT or the team can’t get that new tool then fine! It’s far more important that you and your family benefit from your hard work. This approach is recommended in year 2 and beyond as in year one we are growing and sometimes need to re-invest in the business.