Are you under the impression that your business profit is the same as your income? Many small business owners make this mistake, believing that their profits are all they need to worry about when it comes to running their company.
Unfortunately, this couldn’t be further from the truth – while measuring and tracking profits is essential for any successful enterprise, there’s a difference between what counts toward your business income and how much of those dollars end up back in your pocket.
In this episode, I discuss why you should not consider your business profit as your income. While there may be an overlap in these two concepts, they are quite distinct. In fact, your business profit is only part of the larger picture regarding successful financial planning.
By the end of this episode, you’ll have a grasp on not only why separating these two concepts is important but also how doing so can shape, or turn around, the financial performance of any company.
IN THIS EPISODE, YOU’LL FIND OUT…
- How you could unintentionally be setting yourself up for failure (01:26)
- Why paying yourself weekly is so important (03:08)
- What is breakeven, and what is a dividend? (05:44)
- Action steps to consider from this episode (07:18)
QUOTES
“If you think that your profit is your personal income, it’s going to limit your ability to grow as a business owner.”
“If you go into business, thinking that the profit you make in your business is your personal money, you’re setting yourself up for failure.”
WHERE YOU CAN FIND CARL TAYLOR
Automation Agency
CarlTaylor.com.au
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Like this episode? Have topics that you would like us to discuss? We’d love to hear your feedback and comments. Let us know by leaving a comment below.