Are you paying yourself a salary OR "taking what you want as you need it"?

“I just take what I need as I want it”

When I speak with business owners regarding helping them improve their personal and business performance, and we talk about increasing their income or salary, it still surprises me how many of them DON’T take a regular, consistent income from the business, and they say something like:

“I just take what I need as I want it”

When I hear this, I know instantly that there is literally buckets of untapped potential in this person, and the way that they run their business.

So, why wouldn’t someone take a consistent wage from their business?

Sometimes, it’s Cashflow…Sometimes, the business isn’t performing to the necessary level…

But the majority of the time, the business is actually performing OK, but the business and the money aren’t being managed.

I coach small business owners to optimise their own performance and skills, so they can transform the financial results of their business.

I do this by helping the owners see what needs to change within themselves, and within their business, so that the business can become a vehicle that will provide for their own personal financial stability and freedom.

So when I hear that comment, I know that it’s (not definite), but very likely:

- There’s no monthly management accounts where the Sales, COGS, Expenses, Gross & Net Profit percentages are being accurately monitored

- There’s no goals and targets in place with regard to Sales and Profits

- The personal money that is being taken from the business - as and when it’s needed - isn’t being used to consistently invest in the owners future financial freedom…Money ‘left’ in a business and absorbed by the day-to-day running costs often disguises other underlying business performance issues.

- When the key numbers aren’t being monitored within the business, there’s no visibility on what’s working and what’s not working…which makes it difficult, if not impossible, to decide on and apply a strategy for improvement and further growth.

- When there’s no focus on the numbers or the end goals, neither the business owner or the team are performing at their potential. Imagine if you were playing football on a team…if no-one was measuring the score. and you didn’t know what you were aiming for…how long would you keep playing ‘flat out’ and to the best of your ability?

- The business owner has money ‘blocks’ (we all have them…), and is not giving money the ‘leadership’ that’s required if they want to make it work FOR them…rather than THEM continuing to work for money indefinitely…this often shows up in ‘avoidance’ of the real numbers…or in telling ourselves that it’s all too complicated…[when it’s actually quite simple]

It’s also likely that the owner can be taking a lot more for personal use that they’re aware of because they’re not measuring it…and it goes unnoticed when ‘untangling the Christmas lights’ of the accounts at the end of the financial year…

If any of this resonates with you…and you’d like to make some changes so you can realise your own potential, and dramatically improve the financial performance of your business…message me for a quick chat.??