Why Do You Need To Make A Profit?
Don’t confuse profit with salary or hourly wages. Making a profit isn’t optional: Your business needs profit to survive.
Don’t confuse profit with salary or hourly wages. Making a profit isn’t optional: Your business needs profit to survive.
If you’re a contractor, how much should you be paid to own and run your own construction company? How much should a construction company owner be paid as salary?
You’re in business to provide a service and make a profit doing it. Having the financial info you need to make decisions is critical for your business success.
The next time anyone, including yourself, wants to complain about how much money you make, think about this quote from Henry Ford.
We had a question come in this week from a contractor asking about how to calculate the volume of business a company needs to support the owner’s salary.
One of our clients called with cash flow problems. Leads were coming in, sales and production was good, correct number of employees for the volume of work, but no money.
During a recent class I taught, it was clear many in the audience didn’t understand that their sales volume must be enough to support the salary of the company owner.
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