Drawing from your business can lead you into a trap, especially if you treat your business as an ATM to spend for personal use or your company.
Here is how you can avoid falling into that trap and still be able to draw money from your business effectively:
1) Work out a regular amount.
Work out how much you need on a weekly basis. Take that set amount each week or each month – whatever that is most appropriate for you.
2) Put money aside for tax.
Work out the tax that you need to pay and put that aside before you draw out for yourself. You won’t have to deal with unnecessary stress when that tax bill comes around if you do so.
3) Identify the root cause.
If you find yourself constantly dipping into the business, find out what could be the potential reasons. Are your personal expenses too high? Is there something that is out of your control that is happening outside of the business?
4) Work out the right amount.
In Biznostics, we provide our customers the necessary tools and applications, including a simple algorithmic calculator that will work out a sustainable amount that they can withdraw from the business. This is useful in telling them how much you need to leave in the business for it to grow while working out the amount of money you can draw out to make your personal expenses.
P.S. Whenever you are ready here are 3 ways we can help you build and grow your business:
1) Join the Construction Business Owners Network
It’s our free Facebook Community for business owners in the construction industry where you can learn ways to make your business more efficient, more profitable and more enjoyable to work at. Click here to join
2) Watch the ‘From Business Slavery to Freedom’ Video Training
Watch this 20 minute crash course on how to take control of your time so you are more efficient, less stressed and have more freedom. Click here now to watch
3) Join our Business Freedom Program
If you’d like to work with us directly to create a business that makes the money you want and gives you choice of how much you work… email us here with the word ‘Freedom’ in the subject line and we’ll get you all the details.