I highly recommend Mike Michalowicz’s wisdom so get and read his books Profit First and The Toilet Paper Entrepreneur and if you follow his advice you will make more money just like me!
Pay Yourself First
This week I’m concentrating on the concept of “pay yourself first” which is explained really well in Mike’s book Profit First.
WARNING: Beware of people promising to teach you something they have not created in their own lives!
Mike has done it.
I am screaming this business advice to you because I have done it.
Why This Works
When you pay yourself first, you are forced to run your business on the money that’s left over… and you’ll do it.
As small business owners, we spend based on how much is in our checking account and that’s wrong.
If we have a good month, we spend more (new camera, printer, tech gadget, social media ads, etc.). But when we have a slow month we scramble to make ends meet.
Look, get a budget together. Know how much you really need to run your business. Then pay yourself first and make the business work off of what’s left.
You’ll get creative and be less wasteful! You can make it work… if you work!
How to do it. (The Tactical, Workable Plan)
If you are not currently paying yourself first and you think you absolutely cannot pay yourself anything right now… then start with 1% of your revenue.
Here’s the math…
If you make $1,000 this month as a Private Investigator or Process Server, then keeping 1% means keeping just $10 for yourself.
If you can’t do that, you need to re-evaluate EVERYTING about your business.
Should you be paying yourself more than 1%? YES! Absolutely! But if you are struggling right now… start with 1%.
Personally, I have a sizable percentage of my revenue automatically deposited into my retirement account. I run my business on what’s left over. It works.
If you like these helpful tips, then don’t miss out on my free special report If You Want To Be a Private Investigator Give Up… Unless You Do These Three Things. You can get it right here…
Committed to your success,
Larry Kaye, P.I.
P.S. – In summary: You will spend every penny you make keeping your business up and running, hoping it will pay off someday. Instead, pay yourself off the top then run (and grow!) your business off of what’s left!