Category: Growing a Business

The Business Owner’s Guide To Paying Yourself

The Business Owner’s Guide To Paying Yourself

How To Pay Yourself as a Business Owner: Key Takeaways Business owners have several choices when it comes to how they pay themselves, including owner’s draw and formal payroll.  Choosing the right business structure can save money on taxes. However, failing to pay reasonable compensation or payroll taxes when required can be costly.  One of the key decisions small business owners need to make is how to pay themselves. How, when, and how much to pay yourself isn't always a… Read More
What Is a Good Profit Margin? The Different Types of Profit Margins & Industry Benchmarks

What Is a Good Profit Margin? The Different Types of Profit Margins & Industry Benchmarks

“No business will survive at the end of the day without profit,” warns Bruce Eckfeldt, 5X Inc 500 CEO and strategic business coach.  “There are ways to deal with cash flow issues in the short and medium term, if you can show long-term profit.” While many business owners find the numbers side of running a business tedious or frustrating, they provide insights you can't get otherwise. Understanding profit margins and building a profitable business is what makes a business successful. … Read More
How To Organize Your Small Business Finances

How To Organize Your Small Business Finances

Organizing your business finances can be a challenge, whether you’re a new small business owner just starting out or growing your business.  When Rosie Ferrero started her ecommerce business, Roupa Fashions, a boutique that curates designs and styles from around the world, she did something smart: she opened and used a business bank account. But she found that keeping all her money in one business account didn’t give her the insights she needed to make informed decisions about her finances. … Read More
How To Calculate Total Financing Costs and ROI

How To Calculate Total Financing Costs and ROI

Key takeaways: Financing costs refer to all the expenses related to borrowing money, including interest and any fees. ROI, or return on investment, is calculated by dividing net profit (or loss) by the cost of the investment. For small business owners with limited time and resources, calculating financing costs and ROI can be particularly challenging. Still, these metrics are essential for managing cash flow, evaluating investment opportunities, and deciding when to borrow. When is it worth it to borrow money… Read More
Inflation and Rising Costs: What Businesses Should Know in 2024

Inflation and Rising Costs: What Businesses Should Know in 2024

Inflation rates have “hugely” affected LaToya Redick’s business Redick Beauty Affect, a company that sells all natural skin care and cosmetics. As a relatively new business owner, Redick says she has not been able to participate in the in-person events she is confident would be valuable for connecting with customers. She’s found herself “trying to figure out how to keep it up and going with little to no resources.” She’s not alone. CNBC, First in Business Worldwide, and SurveyMonkey’s quarterly… Read More
Must Do Checklist for Small Business Financial Checkup

Must Do Checklist for Small Business Financial Checkup

Every Friday, Margo Burr, a public speaking trainer and Founder of B7 Media Relations, reviews her business finances. Using her accounting software and spreadsheet, she spends about 30 minutes checking in on her business spending and revenue. She also sets quarterly goals and checks in monthly.  “It holds me accountable,” she says, “and helps me see in real time what I spent.” Whether you are a small business owner with a startup, or have several years under your belt, regular… Read More