This wasn’t as big of a deal when revenue was high. I was able to pay my expenses, and still pay myself a good salary.
But, just as Michalowicz predicted, when sales slowed down, my monthly costs weighed on me like never before.
Michalowicz wrote Profit First, which I reviewed and loved. It transformed my business and it’s helped pretty much all of my coaching clients. Even one of my friends that I took regular walks by the river with when it was nice out said it changed his business.
So, why haven’t you read it yet?
With Justin Jackson’s post, I love most as he talks about his target salary. The biggest issue I’ve seen with solo people is that they can’t ever take the plunge and then pay themselves less.
I had to do it this year. We had to cut family expenses on top of the deep business cuts I had done. But I have so much more freedom this year and so much less stress than last year.
The salary cut was worth it.