The $100 MBA Show

MBA2646 Why Most Founders Stay Broke—Even After 6 Figures

Jul 4, 2025
Many business founders struggle financially even after hitting six figures, often confusing revenue with profit. The discussion highlights the importance of establishing a structured salary and financial planning for sustainable growth. Founders are reminded to value productive tasks over being busy to avoid common pitfalls. Real-life strategies are shared to shift from survival mode to thriving financially, encouraging entrepreneurs to understand their financial metrics and build robust systems for long-term success.
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INSIGHT

Revenue Isn't Personal Income

  • Hitting six figures in revenue doesn't mean personal wealth or financial freedom.
  • Many founders confuse gross revenue with actual personal income and profit.
ADVICE

Pay Yourself First

  • Start paying yourself a salary early to build financial stability.
  • If the business can't afford a salary for the owner, the business model has a problem.
ADVICE

Invest in Financial Systems

  • Invest in a bookkeeper or accountant to track expenses and profitability.
  • Good financial systems prevent crashing and support sustainable growth.
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