Understanding Profit vs. Paycheck in Business Ownership

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Episode 1681:

Paula Pant sheds light on a common entrepreneurial pitfall: mistaking personal compensation for business profit. She urges small business owners to distinguish between their role as an investor and as a worker, emphasizing that true profit is what remains after paying yourself a fair wage, not the leftover after expenses minus unpaid labor.

Read along with the original article(s) here: https://affordanything.com/make-a-profit-after-paying-yourself/

Quotes to ponder:

"Profit after paying yourself!"

"I can’t value my time at $0, value someone else’s time at a rate that’s greater than $0, and make an apples-to-apples comparison between the two."

"Don’t take business lessons from the IRS."

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