As a business owner, do you have to go to work? If you do, you are trading time for money, and that’s the definition of a job. Business owners should earn distribution checks, not paychecks.
A paycheck is compensation for time spent at work.
A distribution check is compensation for accepting the risk and responsibilities of ownership.
Distributions are a return on investment, which has nothing to do with going to work.
Read MoreI am a business coach by trade, but I am also an amateur painter. I learned a lesson from that hobby that I’ll never forget.
I said: ”I know what you’re thinking.” “Oh?” she responded, “What’s that?” “You’re thinking that’s a lot of money for a painting. How about I knock 20% off the price?” “Thanks,” she said. “I’ll take it. But just so you know, I was thinking about how to get it home. I measured, and it won’t fit in my car.”
Ouch!
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