Simple Numbers, Straight Talk, Big Profits! Summary for Entrepreneurs

10 Key Takeaways

For business owners who want to confidently understand financials and make strategic, profitable decisions.

• You must pay yourself a fair market-rate salary, not just take a draw. It's the only way to know if your business is truly profitable.

• Aim for a 10% net profit after paying all expenses, including your own market salary. This is the benchmark of a healthy, sustainable business.

• Your labor productivity (how much revenue you generate per dollar spent on labor, including yourself) is the #1 profit lever you have.

• Set a hard salary cap (e.g., total labor cost can't be more than 40% of revenue) to protect your margins and prevent over-hiring.

• Cash in the bank is a trailing indicator. You must manage your business using forward-looking metrics, not just your bank balance.

• Never, ever use debt (like a credit card) to cover your regular operating expenses. This is a massive red flag that your business model is broken.

• Stop confusing your tax strategy (like burying expenses to lower taxes) with true business profitability. A buyer will see right through this.

• Create a simple financial scorecard with your 3-5 most important numbers (e.g., revenue, net profit, leads) and look at it weekly.

• You must focus on the economic truth of your cash flow and profitability, not the accounting gymnastics your tax-preparer uses once a year.

• Track your revenue per labor dollar to monitor your business's true efficiency.

The Economic Truth of a Saleable Business

Greg Crabtree gives you the non-negotiable financial truths for building a truly profitable business. His principle of paying yourself a market wage is the single best way to avoid the messy books trap and prove your real profit to a buyer. This is how you get a top valuation. Read our guide on how to get started: Your Business Isn't Saleable (Yet). Here's How to Fix It.

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