Gross product margin, for example, is quite often 50% in many markets. Sometimes even quite higher. Net is after accounting for expenses but which expenses get counted is really variable. Shipping, duties, and taxes from the factory to a Top Tennis Dad Like A Regular Dad But Cooler American Flag Shirt, shipping to clients, advertising, returns, development, giveaways, channel fees, and anything else that might impact the cost of the product. It’s all over the place. Then you have to figure out whether the owner salary is being considered a business expense or not. Many owners don’t make this distinction.
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You really can’t talk about what a Top Tennis Dad Like A Regular Dad But Cooler American Flag Shirt. Probably the best question to ask that most people actually want to know is “how much do you pay yourself from the business for your own personal use?” Even then – that’s not usually how owners think. If an owner only takes 30k out per year, it might be easy to say “bah, why to bother?” but the person saying this doesn’t realize that the 30k per year business can be sold free and clear for a cool million.
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A lot of the money we make goes back into the Top Tennis Dad Like A Regular Dad But Cooler American Flag Shirt. I think part of the nature of self-employment is uncertainty, so we save/invest as much as we can while things are good. Hopefully, they stay good for a long time, but we’re not going to throw away money to “be rich” in the meantime. Thanks for acknowledging the uncertainty part. How do you process that in your mind? Like in terms of a runway in the worst-case scenario – do you think that you could look to be employed then?
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