Nov 2, 2018
Mike and I talk about the ways new business owners can easily know if they are profitable without having to wait unit their bookkeeper or accountant give them their monthly P&L statement. You know as soon as you move the money to the appropriate accounts if you’re making money or losing money on each job. You also put your money into your profit accounts first! So you make a profit on every job rather than your profit being the number left over when the expenses are all paid.
1 Create 5 accounts, in the beginning, at your bank.
2 Determine the percentage of money that goes to each of those accounts.
3 Take out 50% of the profits each quarter to spend on yourself….NOT on the business!
4 Create a CapEx account to budget for future capital expenses within the business.
Reach out to Mike here www.mikemotorbike.com
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