Business Owners: How Much to Pay Yourself and Reinvest in the Business (Profit First Model)

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?

[carolhenderson]

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

[kadeyoung]

Good stuff man! I’ve never seen this revenue chart before, but its a perfect guideline.

[stephiburgess]

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 :)

[maxmcnamara]

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.

[grownlady]

What an awesome video!! Your content is just what the doctor ordered!

[kwaldenblessed]

Need you back making these type of videos!

[NathanJamesLarsen]

This is really good. Getting that book now

[goliteyourworld]

This is an excellent video idea. It also didn't feel like it took 15 minutes to watch, so great execution.

[jOhNdAVIID]

Awesome man. Definitely will use this method with My start up freelance business.

[Thelionandthelamb_]

With opening different accounts, would they all be opened with the business EIN?

[samdezao]

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!

[joesharpe]

Is the " Real Revenue" the gross income or the top line revenue?
Where does COGS fit in?

[rossstokes]

what is the difference in profit and owner's pay?

[rainrelax]

Is this still accurate can you do a update on this thanks

[jorgegonzalezfundora]

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.

[olivedrab]

Great video Jake. Question on the % breakdowns. Why do the operating expenses go up so much as revenue increases?

[theanswerswevebeenwaitingf]

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 ?

[bernadettejosephs]

As a Christian, do you tithe from your business?