Far too many entrepreneurs focus on making their first half a million dollars in hopes of reaching $1 million in revenue. When they think about gross revenue and scaling, they make too many sacrifices for things that do not generate revenue and most importantly, profit. Entrepreneurs that don’t pay themselves, experience burn out and find themselves years into the business trying to survive on $30,000-$50,000 annual income. There are a mentality and a strategy that enables entrepreneurs to focus on their net income to help reach their first $100,000 in a year. When most entrepreneurs focus on revenue, they sacrifice profit margin. I will train you on how to focus on your net income. I am going to teach you the importance of paying yourself first without taking dividends out of your company, paying your company to set retained earnings aside, and making strategic decisions based on your PNL and balance sheet.
One of the most important things any entrepreneur can do once they hit their first $100,000 in net income is to make strategic decisions. Companies that are able to scale to $250,000-$1,000,000+ in net income is to invest in a Number Two. This could be a COO, a minority partner, or one of your strongest employees with leadership skills. You can begin by giving them merit-based increases or profit-sharing as you work their way into an equity position.
Not only am I a Number One now in my own businesses but 6 of the 23 startups I have produced, I started as a Number Two. The most profitable business that I ever started was my Glow Golf business with Reginald Booth. I was and still, am Number Two in that business. So, I know what has to happen to build trust, what you need to look for when identifying that Number Two, the responsibilities you need to delegate to them, how you structure profit sharing, equity sharing and more.
There’s no such thing as work-life balance. Your work and personal life are intertwined. So, how do you prioritize the people in life that matter to you most, while pursuing the goals in life that matter to you most? You have to have transparency about your business with your family. You have to have a communication structure in place that enables you to prioritize your family commitments. Everybody needs a life. I am here to offer you guidance through balancing family commitments with the ebbs and flows of running a business.