Is your Business working properly?

If that sounds backwards to you, you’re not alone. Most businesses do it the other way around…

They run the business first, take whatever money is left (if anything), and then panic when the tax bill arrives.

But when a business model is working properly, the numbers should comfortably support all 3 of these steps.

Step 1: Put Aside the Tax

Tax isn’t an unexpected bill. It’s simply a share of the profit your business makes.

Setting aside money regularly for things like corporation tax, VAT, or PAYE means you’re not scrambling around when the bill arrives.

If paying tax feels impossible, it’s often a sign that the profit margins in the business aren’t strong enough yet.

Step 2: Pay Yourself

You didn’t start your business just to create a job that pays less than employment.

You should be paid properly for your time, expertise and the risk you take running the business.

If there’s never enough left to pay yourself, it’s worth asking an important question:

Is the business model supporting you, or are you supporting the business?

Step 3: Run the Business on what’s left

Once tax is accounted for and you’ve paid yourself (properly!!), the remaining money should comfortably cover the costs of running the business.

If it doesn’t, something in the model needs adjusting.

Usually, it comes down to things like:

• Prices being too low

• Costs creeping up over time unchecked

• Taking on work that isn’t profitable

• Growth happening faster than profits are generated

If you’d like to learn more about fixing or maximising your business model, then next month we’ll be launching a video series of the very simple ‘Cash Concept Business Model’.

If you’d like to be notified when it’s launched, then please email ‘Cash Concept’ to enquiries@businesswealthacademy.co.uk