There is a myth that in business, you cannot pay yourself for the first couple of year. The truth is, this is a false narrative that many put out there because of their missteps and bad business decisions.
During my time as an entrepreneur and a coach, I have observed different approaches to business. In particular, entrepreneurs take varied approaches to positioning one’s business in the market place. From my observations, I have categorized three broad categories of small business owners:
1. THE UNTRAINED ENTREPRENEUR
This business owner mistakes cash for profit and growth. He is simply happy to have money coming in. However, he does not look at the cost of putting out the product/service compared to the cost of it.
2. THE SEMI-EXPERIENCED UNTRAINED ENTREPRENEUR
This business owner has enough experience to understand how mark-up his the product or service to make a “profit”. Here’s what happens though. This ” profit” often disappears before you know it because you did not take into consideration other less obvious costs. These may include the operational costs that are necessary for business but not acquiring the product. Failing to account for these costs doesn’t negate the fact that you have to pay for them still. This is one of the ways that a high-income business becomes a no-profit business.
3. THE 4P3 ENTREPRENEUR
This is the business owner who knows how to use the 4 Pillars Profitability Pathway. With the 4 Pillars approach you can build a high-income, profitable and lasting business. The 4 Pillars of Profitability are Concept, Creation, Concreteness and Communications. If you learn to structure these four pillars into your business, what you learn is to build in profitability into every stage of your business.
So what does this have to do with paying yourself? You see the 4P3 Entrepreneur understands how to price their products or service so that they can pay themselves from every sale. This is a skill that is learned over time and practice. It’s something that many business owners learn through trial and error and for many, the lesson isn’t learn. My goal is to help you to become more skillful in business and making a real profit every time.
Do you want to be a 4P3 Entrepreneur? Sign up today for my 4 Pillars of Profitability free email course to learn how.
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