There are a lot of reasons why people start their own businesses, and one of them is building wealth for themselves. In this episode, I’m sharing how to turn the cash flow you’re generating in your business into wealth and net worth. From stabilizing your business to creating multiple streams of income, I’m covering all the steps here. In upcoming episodes, I’m going into a lot more detail about investing, so be sure to subscribe to the podcast to stay tuned!
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Listen to Episode 15: Calculating Your Baseline Revenue
Listen to Episode 6: My Spin on the Profit First Method
Some key takeaways on turning your business cash flow into net worth are:
Generating wealth using your business is a two-step process. Step 1: generate cash flow in your business. Step 2: invest that cash flow to build wealth. It might not be quite as easy as it sounds, but it really is that straightforward.
There are three stages of wealth building in your business: stabilize, protect, and invest. The goal is to work your way up to the “invest” phase, but you may bounce back and forth between these phases depending on the season you’re in your life and business.
How do you know if you have enough money to invest? If you are generating enough money to pay yourself consistently, you’ve set aside money for taxes, and you have a cash reserve built up in case of any “oh sh*t” moments, what’s left over is yours to invest.
I’m Sarah Young - a CPA, Virtual CFO, and the Owner of Young + Co! I have over a decade of experience in helping entrepreneurs scale their businesses and build wealth at the 6- and 7-figure levels, and I started the Profit + Prosper podcast to help you do the same. Profit + Prosper is a business finance podcast created to help entrepreneurs build their wealth in a way that’s fun and empowering. This is NOT a boring numbers podcast - I will share tactical tips to increase your profit so you can truly prosper in your business and in life. I hope you’ll subscribe so we can Profit + Prosper together!
Connect with Sarah:
Instagram - https://www.instagram.com/youngcocfo/
Facebook - https://www.facebook.com/youngcocfo
Website - https://www.trustyoungco.com/