It must be a good book. Alot of people left positive reviews on amazon
Profits < 20%
Labor > 25%
Bus = 30%
Accruals = 15%
Gives 10% flex.
I just read a bit of that book and really like the concept.
When you say LABOR are you referring to paying employees?
Yes
Hey guys check out this great thread on this topic (plenty of insight.)
You are an employee, pay yourself as such.
Thanks, that chart is extremely helpful. I appreciate that
I find this subject pretty interesting. I am a bit surprised though, that more of you aren’t being direct with how you do this. Particularly the solo crowd.
Honestly, I wonder if this subject isn’t the major reason most don’t make it 5 years.
I do not need much. Live pretty simply and cut much of waste a few years back.
I take a set amount which provides what I need. I like keeping money in the business for “oh shit” days or seasons.
End of the year look at the money left and take what I feel comfortable with as a bonus.
Better questions may be do people get “paychecks” or “draws/distributions”
I posted a link up above that people shared how they break things down into %.
Like some people mentioned. Read profit first. Awesome book. Great game plan to follow
I know it’s been said already, but for those of you that are hesitating or thinking, “oh yeah, cool, I’ll do that” but didn’t already buy the book and begin reading: GET PROFIT FIRST. NOW.
Right now.
Ok, why didn’t you get Profit First yet??
Stop reading this thread and get Profit First!
Seriously, just DO IT!
Pay yourself as little as possible at first. You could always give yourself a raise if need bee. I think in the beginning I was making/paying myself 2000 a month.
I don’t think anyone starting out can grasp exactly what your expensive are going to be. So hence as little as possible to start
You don’t want my copy… it’s worn and full of hand written notes all over it. Plus it is opened up and used atleast once a week or two.
It really is hard to grasp especially when you are used to working for someone else and everything is already taken from your paycheck. (Taxes and such)