Understanding Six-Figure Milestones

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Are you chasing six-figure dreams but feeling lost in a maze of revenue, profit, and income? Join me, Dr. Sheena Howard, and uncover the nuanced realities behind those enticing six-figure milestones. Through candid examples and personal insights, I reveal how a business can rake in impressive revenue yet still be on shaky financial ground. This episode is packed with practical wisdom to help you set realistic financial goals, understand the true meaning of six figures, and avoid common pitfalls that can derail your success.

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@drsheenahoward | Power Your Research

Episode Transcript

Speaker 1 (00:00):
But of course, you can have a business that made
$100,000 in revenue.
But if you spent $90,000 inrunning the business, well, you
only have $10,000 profit, right?
So that's not a very goodbusiness.
So that's revenue, right?
Revenue doesn't mean you madethat much.
It doesn't mean you're takinghome that much, right, you could

(00:22):
still be broke.
Your business could still bebroke.
I don't want my work to bestuck behind an academic paywall
.
I want to leave a legacy, Iwant to reach my potential and I

(01:00):
want to change lives.
This podcast, power yourResearch, is my attempt to help
the smartest people in the worlddo that.
Can you?
My hope is that you'll applywhat you learn here and one day
join the Power your Researchprogram where you can work with
me one-on-one.
We're talking about what does$100,000 mean, and I've had some

(01:23):
revelations over the lastcouple of years that are kind of
obvious, but I think I want toshare them with you, because a
hundred thousand dollars canmean different things, and I
think getting clarity on thedifferent meanings will possibly
help you set goals, but alsohelp you to ask better questions
.
If you join a coaching programor you hire a coach that

(01:44):
promises you to make six figuresor something like that.
So there's three things I wantto share.
There's $100,000 in revenue,there's $100,000 in profit and
then there's $100,000 in income.
Let's say, after taxes orbefore taxes, it doesn't even
matter, just $100,000 in income,even though those are two

(02:05):
different things too.
So $100,000 in revenue meansthat you have a business that
made $100,000 in revenue.
But of course, you can have abusiness that made $100,000 in
revenue.
But if you spent 90,000 inrunning the business, well, you
only have $10,000 profit, right?

(02:26):
So that's not a very goodbusiness.
So that's revenue, right?
Revenue doesn't mean you madethat much.
It doesn't mean you're takinghome that much, right, you could
still be broke, your businesscould still be broke.
Second, $100,000 in profit.
So $100,000 in profit isactually what the business made,

(02:47):
right, after expenses, afterall the expenses.
So $100,000 in profit mightmean your business had to
actually make $200,000 inrevenue so that you can have
$100,000 in profit.
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(03:09):
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But even if your business makes$100,000 in profit, which is

(03:31):
great, it doesn't mean that youtake home $100,000.
Because if your business ismaking that much money, you
probably should be on payrollpaying yourself as an employee.
And so that leads down to thethird understanding of $100,000.
So $100,000 in income wouldmean your business has paid you

(03:55):
in a salary $100,000.
Of course, you need to makemore than that if you want your
business to pay you $100,000after taxes.
Right, yes, after taxes.
So there are different ways tounderstand six figures and while
that is a great goal to have,when you're setting your goals
and your intentions and you'relooking at other business models

(04:16):
and all that kind of stuff, youwant to know what the six
figures really means.
Because I would imagine that ifyou want to make six figures,
you're probably talking aboutmaking six figures in income,
whether it's before taxes orafter taxes, because that's
probably a lot better thanmaking $100,000 in revenue but
only being able to pay yourself$10,000.

(04:37):
So I, but only being able topay yourself $10,000.
So I hope this helps somebodyout there and I would love to
hear your comments or questions,so please leave them below.
I hope you have an amazing dayyou.