278 - How Much Should You Pay Yourself?

In this episode, you'll discover:

Fully-Loaded Books is the requirement of a Remarkable Business
How should you ACCOUNT for your Compensation on your books?
How to arrive at a TRUE Profit and Profit Margin
Understand the difference between Direct and Indirect costs in your business
Differentiate between COGS and COSD
Calculate owner’s discretionary earnings (ODE) or Seller's discretionary earning (SDE)

Episode Highlights

00:49 - The importance of discussing self-compensation which is often overlooked.

02:34 - The necessity of setting up a compensation model that energizes the owner.

04:01 - A look at the "Remarkable Money Metrics" as part of the vital signs and standards for business compensation.

05:09 - The three ways that a business owner gets paid.

08:01 - The importance of understanding business compensation regardless of your current level of knowledge.

12:15 - Scenario 1 - A look at the framework for compensation in a million dollar practice.

24:14 - Scenario 2 - A look at compensation in a $500,000 practice.

28:09 - Scenario 3 - Compensation framework in a $750,000 practice

29:59 - The importance of paying oneself right and using the provided framework to scale business compensation.

Resources Mentioned

To learn more about the REM CEO Program, please visit: http://www.theremarkablepractice.com/rem-ceo

Dr. Stephen’s Book –