Are You Buying a Business, or Just Buying Yourself a Job?

Valuing a small business and achieving true goodwill is tough. When assessing a business, the critical metric is profitability after paying the owners a proper market wage for running it. Too many people buy a business only to realize they have simply purchased a wage they could have earned as an employee, while taking on all the extra stress and responsibility. If your role would typically earn a $100,000 salary as an employee, your business should pay you that wage first and still generate clear profit on top of it to reward your effort. Because small business owners are already working as hard as they can, working longer hours is rarely the solution. The real change comes down to pricing. Far too many owners undervalue their skills and services, but charging appropriately for what you deliver is essential to building genuine business profit and goodwill. General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Robert Goudie is an Authorised Representative (No. 235974) of AFSL 495401.