How profitable do I need to be?
Profit! We all want it, right!? But how do you manage it? How much profit do you need to reach your goals? How profitable do you need to be? How can you plan for profitability? What does profit need to do for you?
In this video, we cover 5 things that your profit needs to cover in order to have a financially healthy and sustainable business. We cover:
2) owner's pay
4) debt payments
Profit has to be high enough for you to achieve your financials goals in any small business! Remember that most small businesses are CASH basis, so the profit at the end of the day typically equals Money in - Money out. But we also need to remember that things like borrowing from a line of credit or paying off debt does NOT land on the income statement, it lands on the balance sheet.
Confused? no worries - Hannah Smolinski, CPA and Small Business CFO will break it down for you!
Get help with our PPP workshop/course for loans under $50k here for only $47: https://claracfo.podia.com/3508s-course-how-to-get-your-ppp-loan-forgiven-loans-under-50-000
If you have a loan between $50,000-$150,000, we have a PPP forgiveness workshop for that too:
For 1:1 help with your PPP or EIDL loan, book a time with Hannah to discuss your forgiveness here: https://claracfo.as.me/claritysessions
💲 Need an accounting system? We use Quickbooks Online with clients and recommend it as the best accounting system for small businesses. Sign up to get a free trial AND 12 months 50% off! https://claracfo.com/QBO
🙋♀Got Employees? Need a payroll company that knows what small businesses need? We recommend Gusto as the best small business payroll provider. Sign up for $100 gift card after you run your first payroll: https://claracfo.com/gusto
(As an affiliate or referral partner for these companies, I may earn rewards from qualifying purchases)
Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.