This is a phrase my biz partner and I use to mean, "are we doing more than paying overheads, wages, suppliers and taxes yet?" i.e. did we make any money for ourselves? And laughable though it sounds, it is surprisingly easy to forget. You can be so busy running your business that you forget to check if you can feed yourselves.
Now I know it's also very easy to decide how much you need to earn, take that out of the business, then wonder why your going bust. And though I've seen it done several times, it's stupid.
So how do you move from keeping your head above water and paying your staff to the excess wealth that everyone who doesn't run an SME thinks you're making already? How does one move out of the corner shop, so to speak.
The honest answer is I don't yet know. But having got our business to the state where it will just about run itself without generating much in the way of dividends, this is the next important question to which we shall address ourselves. The truth is that I have no real desire for anything as opulent as the picture above suggests. But if you can't create a modest pension for yourself from your endeavour, what are you in business for? Thoughts and ideas, most welcome!
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Totally agree with you on this one Simon. I think a 30-day period when you start a business is the only time its acceptable to treat you pay as optional. After that, its as important as the office rent or electricity bill. I've had times when I've gone out consulting, continued to pay the staff, but not paid myself and actually thought the business was doing ok! Not good. Although this is much easier to apply to service & internet businesses than other industries.
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