Pay Yourself First

Link your marketing, finances, and paycheck— to pay you what you want and need.

Michael Van Horn

#10 in the series.

What is your desired paycheck? How big must your business be to pay you that much?

Make sure this never happens to you: “My company is growing, but I’m not putting any more money in my pocket. I’m still occasionally ‘loaning’ money to the company to cover payroll. And I’m still carrying uncashed payroll checks I’ve written to myself.”

The first step is knowing how much you need, so that you can find a way to bring in that much. These exercises take you step-by-step to calculate how much revenue your business must bring in to cover all your operating costs, pay you well, and generate a profit besides.

These exercises are tailored to small, owner-run businesses—service businesses such as consultants, contractors, or salons; retail and wholesale; restaurants—with or without employees.

For home-based solopreneurs, it will force you to separate your home and business expenses—a key step in becoming a “real business.”

Pay Yourself First

Topics Covered

01

Calculate how much money you need—and want—to pay yourself.

02

Make the business “bottom line” your “top line.” Flip your profit & loss statement upside down.

03

Calculate needed business revenue, starting from your desired paycheck.

04

Formula to calculate needed business revenue using your paycheck, overhead, profit needed, and gross margin from sales.

05

The three biggest barriers to calculating needed revenue

06

How to calculate your real gross margin

07

Estimate your needed profit

08

Estimate your expected overhead costs in the coming year

09 

How many customers, and new customers, will you need?

10

How much marketing will it take to bring in that many customers?

Warm up exercise

From the workbook

Ready to increase your selling effectiveness?

Discover the 7 Touches—Turn Leads into Sales. A practical guide to staying connected with prospects, building stronger relationships, and turning more leads into sales.

Proven Strategies

Build trust & real relationships.

Better Results

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Stronger Relationships

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7 touches