When you have a regular income, managing your finances might be hard, but you at least know what your income is, when it??s coming and how much it will be. How do you pay yourself when you own your own business? What is Your Profit Goal? The first profit goal for your business is to have enough coming in to both support your monthly personal needs and to create a financial surplus for your future needs. You can??t stop at simply paying yourself enough to get by each month. You also have to generate enough business income so that you have a personal Financial Surplus. Having a Financial Surplus is a non-negotiable in your personal finances, and that means it has to be the first non-negotiable in your business. So what do you need to do to make that happen? What is Your Minimum Profit Required? The amount of income you need to meet your monthly needs, including your personal Financial Surplus, and the business expenses your currently have are your minimum profit. If that number is greater than your current business income, you must make changes until you meet the minimum profit amount. And when the two numbers are equal, you can start making plans to grow your business even more! What Can You Do? When faced with the task of paying yourself more, you have the same set of choices in your business as you do in your personal finances: decrease expenses, increase income or both. Only the approach differs. Don??t make decisions that will cripple your business in service of this priority, but if an expense doesn??t impact your end goal, get rid of it. Eliminate expenses that don??t move you closer to achieving your mission while looking for new services you can offer to increase your professional value and your income. One of the best ways to tackle this problem is to get outside help. Someone who can take an honest look at your business model and your target market can often see the opportunities you??ve missed. Choose Freedom! Dr. Tony
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