Free Audiobook summary of the book Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree and Beverly Herzog.

This book teaches the fundamentals of owner compensation, profit targets, labour productivity, cash flow, and data reporting. Clear explanations and helpful illustrations throughout make it a must-read guide for small business owners looking to achieve higher profits.

Owner's Salary: Why Your Salary and Distributions are Fogging Your View of Net Income

Don’t confuse business profits with the owner's salary.

You get paid a salary for what you do, and you get a return on what you own.

Until you pay yourself a market-based wage and plug that number into your financials, your financial data is worthless.

How To Understand Owners Salary

If you got run over by a bus today and your heirs decided they would keep the business going in your absence, what would they have to pay someone to do your job? Answering this question determines your market based-wage.

Create A Cash Cow

If you’re not able to pay yourself a market-based wage, then you’re operating at a loss.

Until you pay yourself a market-based wage—and make a profit on top of that you have a sick cow on your hands.

Your goal should be to create a business that generates income for you every day (cash cow).

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