How to calculate your business's real profit (and what to pay yourself as owner)

Most SME owners don't know how much they really earn. They see revenue, see expenses, see what's left in the account and think that's their profit. It isn't. And working without that number is working blind.

The difference between revenue, profit, and what's yours: revenue is what comes in; gross profit is revenue minus cost of goods sold; net profit is gross profit minus all operating expenses; what's yours as owner is net profit minus taxes, reinvestment, and the salary you didn't pay yourself.

How to calculate it in 4 steps: sum all revenue collected; subtract direct costs for gross profit; subtract all operating expenses for net profit; from net profit, separate taxes, a reinvestment reserve, and your owner salary. What's left is what the business truly gave you.

The owner salary: if you don't pay yourself a salary, you don't know if the business pays you what you're worth. Your salary should be what it would cost to hire someone to do your job. If you don't pay yourself that, you're subsidizing the business with free time.

The break-even point: how much you need to sell to not lose money. If you don't know it, you don't know when you're winning and when you're losing.

If you can't answer these questions, your problem isn't sales: it's financial system. And no marketing fixes that.

Book your diagnosis and we'll calculate your real profit, your break-even point, and what you should pay yourself. You leave with clear numbers, whether you hire us or not.