Business Owners: How Much to Pay Yourself and Reinvest in the Business (Profit First Model)
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- Опубліковано 13 жов 2024
- Profit First Book - www.amazon.com...
In this video, Jake discusses how to manage the money you make as a business owner! How much do you pay yourself? How much do you reinvest back into the business?
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Im going out on faith, leaving my job and starting a water ice business. I never ran a business before but Ive been researching and learning a lot, especially with youtube videos. I must tell you, the chart is perfect for me. Thanks
Thank you very helpful
Fantastic video exactly what I was looking for
Good stuff man! I’ve never seen this revenue chart before, but its a perfect guideline.
Thank you!! Love this! This is going to be instrumental in figuring out the financial aspect of my business, really love implementing reverse engineering! Just reading a sample of the book on kindle and soon to purchase. Really useful. I recently started my business, I do a mix of healing / coaching / leading meditations, and just figuring out how to best expand, like creating a subscription community model and making courses. Also working out how best I can deliver the most value to clients and the value and price proposition of that. Recently made a business plan and needed to find a solution to figuring out costs and expenditure. This is going to be awesome to use, thanks again :)
I'm reading this book right now [just got it yesterday evening] and into my 3rd chapter. I forgot it at home and have 30 mins to burn, so I'm like, let me go to you YT and ask "what %age of your profits should you be saving." OH the irony, because you lead me right back to my book 😂.
But honestly, only ankles in, and I'm like, I need to gift this book to every small business owner on my block. They don't teach you this in Entrepreneurship classes, and it is so vital to a business' survival 😮 I'm glad I have this gem going into the early stages of research for my startup. It will save me tremendously in the future.
This is really good. Getting that book now
Awesome man. Definitely will use this method with My start up freelance business.
awesome!
Hey. What platform are you using to sell your business???
Need you back making these type of videos!
This is an excellent video idea. It also didn't feel like it took 15 minutes to watch, so great execution.
Thanks Josh!
What an awesome video!! Your content is just what the doctor ordered!
7 figures!!! Big dog Jake!!
thanks bro
yeah, impressive. wonder what the % profit is
Great video Jake. Question on the % breakdowns. Why do the operating expenses go up so much as revenue increases?
It allows you to build a sustainable team. Expenses go up but the dollar amount of owners pay and profit also go up. I’d have to read the book again to hear his explanation but I know for me now I have a great team and make great profits.
@@JakeGosselinUA-cam thanks for the explanation Jake. Super appreciate it 🙏. Is there any mention of having business partners in the book? I have one. Would I just split the distributions from the profit and owners comp down the middle with them?
Can you explain why it says only setting aside 15% for taxes? Everything else I've ever read says to set aside about 30% to taxes. I have no idea what is best practice! But interested to learn!
Hey Sam, definitely read the "Profit First" book as it's explained in detail there, but basically since you are spending a certain percentage of your gross revenue, you are going to deduct those expenses off your taxable income and if you stick with the percentages in the table, it should work out to be around 15%. The 30% number is a more conservative way to make sure you have more than enough come tax time.
Can you make a video about what payroll processing you might be using , if any. The logistics between transferring your business income into this payroll system and paying your employees . I believe a video with an explanation of this might serve a lot of small business owners who are just starting . Thank you for all you do . God bless you.
Great question. I hired a local payroll and tax company that handles all of it and my bookkeeping. They use ADP to run payroll so every two weeks the money for paychecks and payroll taxes gets withdrawn from the business expense account and ADP direct deposits the money to employees and taxes.
@@JakeGosselinUA-cam Thank you for your reply ! Blessings !
Is the " Real Revenue" the gross income or the top line revenue?
Where does COGS fit in?
With opening different accounts, would they all be opened with the business EIN?
what is the difference in profit and owner's pay?
I’ve started a clothing business but I’m kinda at a standstill on how to do this .., this video was very helpful.. are there program software that does this for us or it’s best to just do our selves ?
Really good video
Is this still accurate can you do a update on this thanks
Hi where are you from??
What is the profit
As a Christian, do you tithe from your business?
This is what I don’t see where to put it?
Dave Ramsey addresses this topic in great detail. You should go check it out, but the short version is your tithe is only on your personal income and not your business income.
So to answer your question, you would tithe from your owners pay section.