Bizgrowth Channel · Aug 29, 2026
Bizgrowth Channel — text status
Want to know your real business profit? Put a market-rate salary for yourself into the numbers.
If replacing the work you do would cost $150,000 a year, treat that $150,000 as a cost when analyzing the business. Whatever is left after paying for your role is the real economic profit from owning the business.
Otherwise, your profit number can lie to you. Part of what looks like profit is really unpaid salary for the work you're doing.