Summary of Greg Crabtree's Simple Numbers, Straight Talk, Big Profits!

By IRB Media

Please note: This is a companion version & not the original book.

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#1 You must pay yourself a market-based wage in order to have accurate financials. And as long as you don’t pay yourself a market-based wage, your financial data is worthless. You can’t just plug some number into the owner’s salary section of your business plan and assume it’s reasonable. If you’re not willing to pay yourself a reasonable salary, then you don’t own a business—you own an idea. And if you don’t own a business, you probably aren’t an entrepreneur. -> The owner’s salary is a key building block for your business. It is important to understand that you are paid a salary for what you do, and you get a return on what you own. As long as you don’t pay yourself a market-based wage, your financial data is worthless.

#2 If your company is an S corporation, it’s a bad plan to pay low wages to avoid payroll taxes. The IRS will look for this when they audit your tax return.

#3 The owner’s salary is a key building block for your business. You must determine your market-based wage before you plug it into your financials.

#4 You must pay yourself a market-based wage in order to have accurate financials. And as long as you don't pay yourself a market-based wage, your financial data is worthless.

• Language: English
• Publisher: IRB Media
• Release date: Oct 7, 2022
• ISBN: 9798350039245

IRB Media

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Insights on Greg Crabtree's Simple Numbers Straight Talk Big Profits

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 14

Insights from Chapter 15

Insights from Chapter 16

Insights from Chapter 17

Insights from Chapter 18

Insights from Chapter 19

Insights from Chapter 20

Insights from Chapter 21

Insights from Chapter 1

#1

The owner’s salary is a key building block for your business. It is important to understand the relationship between your salary and the return on what you own. If you don’t pay yourself a market-based wage, your net income number is lying to you.

#2

Paying yourself a market-based wage is a good thing, as it increases your profits and allows you to pay taxes. The higher your tax bill, the better your business is doing.

#3

You must first determine your market-based salary before plugging it into your finances. The consensus among entrepreneurs is that $30,000 is the acceptable owner’s salary. This is far too low for most business owners, who typically believe their work is worth at least $50,000.

#4

Salary surveys can be used to determine what a CEO should get paid. You should take a blended approach to setting salary levels for your employees, since not all of them will be responsible for the same tasks.

#5

Increasing your pay sometimes leads to another question: If I can only afford to pay myself $30,000, should I still be paying myself a market-based wage. Your goal should