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 4 ways we can help you build and grow your business:
1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week
This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here
2) Watch the Business Freedom Formula Video
In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch
3) Book a 10 Minute Exploration Call
If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you. Book your call here
4) Join our Business Freedom Program
The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at. We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.