My bank account just tipped over into “significant money” territory. I tell you this because it is, well, significant in my mind. And I want to give you a benchmark for your own business.
I’ve been trying to decide whether to disclose the amount, but I decided not to because every business has a different “significant” number. Yours might be a steady $25 per week or six-figures a year or a certain dollar figure in your checking account. It makes no difference, really, except that you track it, watch for it, and celebrate it when it happens.
My business has been profitable since day one. Profitable just means that that the income completely pays for all the expenses in the business, including all the indirect expenses like my home office space, business lunches, and office supplies, and of course all the direct expenses like advertising and supplies for my clients. Profitability is good, because no one else, including my spouse, needs to be involved in how my business decides to spend it’s money.
Especially service businesses, like mine, may take a while to get off the ground and produce significant money, but it is a great feeling when you are able to point to a healthy bank balance, something that is large enough to pay for a family vacation, a car, or even a home, and see that your efforts are paying off in the same way they did when you were back working in cubicle-land.
If you are still struggling this year to make your business pay, and you aren’t already working with a CPA, you owe it to yourself to get some qualified advice on your taxes to keep more of your business earnings and get to your “significant money” threshold sooner. Here are a couple of places to go and look for your next CPA:
Best wishes for a healthy business and a healthy baby.