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07. The #1 Reason You Can't Afford to Pay Yourself

eCommerce Badassery · May 12, 2020 · 25 min

Summary

Many ecommerce entrepreneurs struggle to pay themselves, mistaking their business for a hobby. This episode cuts through the noise, revealing the core financial missteps preventing founders from drawing a salary. Learn how to implement smart financial decisions that transform your venture into a sustainable, profitable business capable of supporting you.

Key takeaways

Themes

finance & fundraisingfounder & leadership

Topics covered

owner compensationfinancial mismanagementcash flow managementprofitability vs. revenuebusiness budgetingfinancial literacyowner's drawexpense management

Episode description

If you want this to be a business instead of a hobby, you need to be able to pay yourself. Once I learned there were so many 6-figure entrepreneurs that weren’t able to pay themselves from their biz, I knew I had to record this episode. That stops now, my friends. It’s time to talk money, honey. What You’ll Learn: The root cause of why you don’t have money to pay yourself What you need to do to ensure you’re making smart financial decisions in your business. The top mistakes I see most eCommerce and retail entrepreneurs make when it comes to their finances. Tools Mentioned in this Episode: Google Analytics YNAB - You Need a Budget Get Your Guide! Download the guide for a recap of we talked about today plus a tool to start getting a better handle on your business finances. ecommercebadassery.com/07 Want More Badassery? Join the eCommerce Badassery Facebook Group and connect with other eCommerce entrepreneurs just like you! Let’s connect on Instagram @ecommercebadassery Ready to Level Up Your Email Marketing & eCommerce Business? Try the Klaviyo Email Marketing Platform - Built specifically for eCommerce, serving entrepreneurs and iconic brands. Work With Me - Interested in getting my brain focused on YOUR business? Book your free discovery call and let’s see how I can help get you to the next level! Rate, Review, & Subscribe Like what you heard? I’d be forever grateful if you’d rate, review and subscribe to the show! Not only does it help your fellow eCommerce entrepreneurs find the eCommerce Badassery podcast; it’s also valuable feedback for me to continue bringing you the content you want to hear. See the full transcript at eCommerceBadassery.com/07

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Frequently asked about this episode

What does this episode say about finance & fundraising?
Separate business and personal finances rigorously to understand true profitability and avoid commingling funds.
What does this episode say about founder & leadership?
Implement robust budgeting and forecasting for both business and personal needs to identify funds available for owner compensation.
What does this episode say about finance & fundraising?
Analyze product/service profit margins to ensure high revenue translates to actual profit available for owner pay.
What does this episode say about finance & fundraising?
Actively identify and control unnecessary business expenses to free up cash flow for owner's salary.
What does this episode say about finance & fundraising?
Establish a planned, consistent owner's draw or salary instead of taking inconsistent amounts based on what's 'left over'.

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