July 16, 2025 • 17 mins
Understanding what percentage of revenue to take home as a therapy practice owner is crucial for building a sustainable business that supports your lifestyle and goals. We guide you through payment targets based on your practice size, helping you create financial clarity and direction.
Take our free assessment at quiz.craigdacy.com to discover your ideal compensation structure and schedule a free call with our coaches to develop a custom financial plan for your practice.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
A common question we get when working with a new
client is how much should I bepaying myself?
How much should I realisticallybe seeing in profitability
inside of my practice?
Well, today I'm gonna guide youthrough some targets that you
can aim for, depending on thesize of your business and what
you should be seeing as far asyour take-home pay and
profitability.
My name is Craig and I'm theowner of Daisy Financial
(00:23):
Coaching.
Our team is on a mission tomake your therapy practice
permanently profitable.
If you own a solo or grouppractice, we're here to help you
build a business that createsmore time, makes more money and
serves more people.
This is the Therapy BusinessPodcast.
(00:44):
We've always been firm believersthat you are your most valuable
employee.
You are the business owner.
For whatever reasons youdecided to start a business,
most of the time, what we see isthat it revolves around two
things, and that's to have afreedom of time and to have
control over your income andwhat you make.
And yet, oftentimes, oftentimes, we find ourselves, as you
(01:04):
likely know, making less than wethought we would or less than
we want to, and working longerhours than we thought would be
ideal, and it's taking us awayfrom the things we want to do.
This is a trap we all fall into.
And then, all of a sudden,we're wondering how can I
increase my pay?
Am I taking home what I shouldbe?
Am I even where I'm supposed tobe right now?
Am I taking home what I shouldbe?
(01:24):
Am I even where I'm supposed tobe right now?
My way off the mark?
And that fog, that not knowing,can really be overwhelming, and
it just leaves us movingforward without direction.
And so we are big believers inknowing what you should be
taking home.
This business should besupporting you financially, and
so, starting with how muchshould you be paying yourself?
And then building the businessaround that, and that's what's
(01:46):
going to help you grow in afinancially healthy way.
Because, let's face it, if youare a $200,000 a year practice
right now and you're strugglingto pay yourself, when you reach
a million dollars, it's notgoing to be any easier to pay
yourself, because as you grow,expenses grow.
You're going to need a team,you're going to have payroll,
you're going to have otherthings coming in.
(02:08):
The systems and softwaresyou're using now likely won't
work for the bigger team.
I'm discovering that now myself, that the softwares we have
used to manage internally.
They're not working now that wehave a team that's growing.
Maybe it worked when it wasjust me and an admin, but now
that we have a full team ofcoaches, we're slowly having to
(02:29):
ramp up our softwares, and thatcosts more.
So, as you grow, more expensesare introduced and it becomes
harder and harder to payyourself.
So let's dig in and talk aboutI'm going to go through four key
, what we call buckets targetsthat you're aiming for to pay
yourself.
Now, before I dig into those,though, I want to talk about the
difference between profit andowner's pay.
(02:51):
So owner's pay is your salaryfor doing the work.
This is the salary yourbusiness is paying you for
seeing clients, for doing themarketing, for managing a team,
managing softwares, whatever itis inside the business that you
are showing up and doing.
That's what owner's pay is allabout.
(03:12):
It's making sure that you'recompensated for the time and
energy you're putting into thebusiness.
I always like to say separateyourself from the business.
Pretend that your business cameand hired you as the CEO, hired
you as a clinician, and that isyour role.
Or hired you as a physicaltherapist.
Whatever type of business youhave, that's your job.
(03:32):
So separate that.
A lot of times we just get sointertwined because it's our
business, it's our baby, it ispart of our identity.
It's hard to separate that.
But when it comes to thefinances and it comes to scaling
, I think it's vital that weseparate ourselves from it and
treat ourselves with that levelof respect, like if you went and
applied for a job.
So your business is paying youowner's pay.
(03:54):
That's again, that's yoursalary for the day-to-day work
you're doing.
Then we have profit.
Profit is what you get fortaking the risk of starting this
business.
This is your reward for puttingit all on the line.
For whether you quit your nineto five to start this, whether
you took time to ramp it upslowly or you just jumped in
(04:15):
feet first hoping for the best,there's so many levels and
degrees, but all of it boilsdown to risk that you took to do
this.
This is no different than ifyou were to start another
company or if you were to investin a company.
You're taking risk.
If you're on the Shark Tankpanel and you're investing in
one of the companies that walksin, you are taking risk and
(04:36):
therefore you are receiving apercentage of the profits.
That's what we are talkingabout, when we're talking about
profit being paid out to you.
Now, we are big believers and wehave a bunch of podcasts.
In fact, if you go back toepisode two, we talk about the
profit first system, which isdesigned to pay you profit, not
just at the bottom of aspreadsheet at the end of the
(04:58):
year when you get ready to filetaxes, it is literally money in
a bank account that's paying outquarterly bonuses.
So if you're not familiar withthat or that sounds enticing to
you, I recommend going back toepisode two and listening to
that as we walk you through howto set up a system in your
business to do that.
Now I want to talk about thefour key targets, the four key
buckets that we are looking for.
(05:19):
This is a percentage of yourrevenue that is probably going
to be ideal for you to be onetaking home as owner's pay and
two taking home in profit.
Now let me give this caveat thatevery business is different,
okay, so this is a general ruleof thumb.
Every business is different.
Every therapy practice isdifferent.
(05:39):
Every physical therapy practiceis different, so know that
while we're aiming for these, alot of different things can come
into play, so we want to makesure that we know that your
situation might be a little bitunique, however, without talking
to you personally and givingyou exact advice, when we work
with clients, we usually deviatea little bit from our target
percentages.
(05:59):
Once we get to know who theyare, what their goals are, what
their expenses are, what they'redealing with, then we can
customize these plans.
But I think having Generaltargets is still fantastic and
if you're aiming for these,you're gonna be in a
tremendously better place thanmost practices are out there.
Let's start with the firstbucket Now.
(06:20):
This is for any business makingbetween zero and $250,000 a
year.
So if you're making under$250,000 a year, I recommend
aiming for 50% being yourowner's pay.
So that means half of whatyou're making you're taking home
as a salary.
Now salaries to be regular.
(06:42):
We want them to be paying youout, whether it's bi-weekly,
weekly, monthly, paying you on aregular rhythm and a consistent
amount.
But about 50% of your annualrevenue is what you should be
taking home.
So if you're making $100,000 ayear, $50,000 a year salary is
what would be ideal.
Now again, everybody's a littlebit different and so in those
early years so, for example, forme, when I first started my
(07:05):
business and I was making lessthan $100,000, when I quit my
job teaching, when I lefteducation to launch this
business full-time, I had totake home about 70% in order for
me to make ends meet.
Now, my expenses were low.
It was just me.
I didn't have an office.
I had a few expenses here andthere.
Maybe a few hundred dollars amonth was what my overhead
(07:27):
expenses were.
So I was able to make it workon about 70% as I grew.
So I was able to make it workon about 70% as I grew, I slowly
brought that percentage downand started aiming for 50%.
So just know wherever you are.
Today doesn't have to be.
I'm not saying today go out andstart taking home 50% of your
money.
I don't know if you can affordto do that.
You might need to take homemore.
(07:48):
So figuring out where you arenow and then slowly aiming for
this I know it's weird to say Itook my percentage down by 20%.
That doesn't mean I took a paycut.
That just meant as my revenueincreased, I slowly decreased
the percentage I was taking home.
I do this so that I have moneyfor growth.
(08:08):
So I'm allocating morepercentage points to operating
expenses.
Now a lot of you listening maybe thrilled as a solopreneur,
maybe you're making $150,000 ayear in revenue and you're like
I don't want to hire a team, I'mjust happy doing the work,
seeing patients, seeing clients,and this is where I am, and so
that's again boils back to maybeyour percentage is always going
(08:31):
to be heavier on the owner'spay side because you're not
trying to scale, you don't wantmoney for marketing.
You're seeing as many clientsas you want.
You got enough clients comingin to support that, and so you
may be happy with taking morehome, and that might be the best
route for you.
Again, in general, we're aimingfor 50% take-home pay.
Now, on the other side of this,it's what we call the 55 split.
(08:54):
So 50% for take-home pay andthen 5% going into profit.
We recommend having an accountnicknamed Profit and 5% of
everything you make goes intothat account.
Now, this goes across the boardfor all of these, but at the
end of the quarter you can takewhat's in that account.
We usually say take about halfof it home as a bonus, as a
reward to you for being thebusiness owner, and the other
(09:17):
half can stay for savings,retained earnings, giving you a
emergency fund cash reserve inthe business.
Once you hit that $250,000 mark,your needs are gonna change.
So if they haven't already, ifyou haven't already started
hiring a few team members,you're gonna be at that place
where you are, you're going tostart hiring people.
(09:37):
They're going to start takingwork off your plate.
They're going to start takingover some of the day-to-day work
that you've been doing fromyour plate.
We're going to start decreasingyour salary percentage, your
owner's pay percentage, andincreasing your profit
(09:58):
percentage.
We want you to shift more intothat business owner role slowly
and be compensated as a businessowner, and less for the
day-to-day work you're doing.
So as we move into that$250,000 range, this next range
is from $250,000 to $500,000.
So when you're in that $250,000to $500,000 range, we recommend
a 35-10 split.
(10:20):
This is 35% of what you'remaking going home to you in
salary and 10% going into thatprofit account.
Now, same thing as I saidearlier, where I don't expect
you tomorrow to start payingyourself 50% as you approach
$250,000, it's not, you'repaying yourself half of 250 and
the day you hit $250,001, nowyou're like, okay, we're cutting
(10:45):
our pay down to 35%.
It's gradual.
We never want you to suddenlytake a pay cut in your business.
It's just like what I wassaying earlier when I was taking
it from 70% down to 50.
As revenue grows, when you hit250, usually as you're going up
from 250 to 300, you're justslowly bringing that percentage
down.
(11:05):
You're slowly you're going totake home the same amount, but
if you're taking home 100,000,that 100,000 compared to 250 and
then compared to 300 is asmaller percentage.
If you kind of get what I'msaying.
As your revenue is going up,your percentage is naturally
going to go down and we're goingto start allocating more to
profit.
So, from $250,000 to $500,000,35% owner's pay, 10% profit is
(11:30):
what we recommend.
Now, as you move on and goingback to this, so you may notice,
55, 50 and 5 is 55% total, 35and 10 is only 45% total.
So why are we taking homes less, 10% less between profit and
(11:55):
owner's pay?
That goes back to as you'rescaling, you're going to need
team members, which means you'regoing to need more money for
operating expenses.
As you grow, you're going toneed more for overhead, for team
, for payroll, and so we want tobe mindful of that and allocate
more percentage points to thatand that will show up as we
reach this next bucket.
So this is the $500,000 to amillion dollar business.
So if you pass that $500,000threshold up to a million
(12:17):
dollars, we recommend a 2015split.
So 20% coming home to you asthe business owner, 15% going
into profit.
Once again, you'll noticethat's 35% total, which means we
have an extra 10% going towardoperating expenses, giving you
more money to grow your team, todo all the things you need to
(12:38):
do Now.
At this point, you may befunneling money into paid
advertising.
There may be a lot of differentthings that you are doing
financially in order to scaleand grow.
Usually, when you're in thatfirst tier that 55, it's slow
growth, right, it's a lot moreorganic.
It's less cash being funneledinto ads and into different
growth mechanisms.
It's you kind of boots to theground, hitting the pavement,
(13:02):
getting clients doing what youcan.
Now, as we scale and grow, wehave more cash and your time is
probably more valuable at thispoint, and so this is usually
where we see businesses startingto turn around and reinvest up
some of their expenses intoadvertising, into marketing and
into scaling.
So a 2015 split is 20% goinghome to you as the business
(13:23):
owner, 15% going home or goinginto that profit account.
So you can see the shift herehappening 20%.
So when you hit that 500K mark,20% is going to be about
$100,000, right?
So that means we're keeping youaround 100.
And then when you get closer tothat million dollar mark,
(13:43):
that's about 200k coming home toyou in salary.
So just keep it in mind usuallyin those first three buckets
we're trying to keep you around100k coming home.
And then once you hit thescaling part, that's where the
real money gets to come home.
That is salary talk, right?
So I'm not even talking aboutthe 5%, 10%, 15% that you're
(14:05):
taking into profit.
So bear that in mind that wemay say and when you get to the
2015, you're taking home 100K insalary, but also 15% of it is
going into profit and you'retaking that home as well.
So that's gonna probably be.
I don't have a calculator infront of me, but let's just say
another 25, 30,000 coming hometo you on top of that in bonuses
(14:27):
, all right.
Lastly, a million dollars, 1million to 5 million.
Usually we recommend a 10 10split.
That's 10% salary, 10% profit.
Once again, we're not sayingcut your salary when you hit
that million dollar mark.
I was just saying 20% of amillion is 200K and then all of
a sudden you pass a million.
(14:48):
All right, now we're cutting itdown to 10%.
So I'm cutting my salary inhalf.
It's gradual.
So as you pass that milliondollar mark we're gonna slowly
just bring that percentage down,not cutting your pay.
So a 10-10 split, this is theleast we cut down what you're
taking home.
So we don't go below thisoverall 20%.
(15:09):
We are not going to funnel moreinto operating expenses at this
point because as you scale wewant to try and keep it at this
healthy balance.
We do have a free quiz on ourwebsite that's going to tell you
exactly what bucket you belongand it's going to go through
exactly what bucket you belongand it's going to go through
some detail on what these looklike, how you can kind of keep
track and keep a pulse on it,and then also what percentage
(15:31):
should be going into operatingexpenses depending on your tier.
We didn't get into that today.
I really wanted to focus onowner's pay and profit on
today's episode.
But if you go toquizcraigdaceycom, I'll also
link it in the show notes below.
You could take a free quiz.
It's just going to ask you ahandful of questions to get to
know your industry, yourbusiness size, a few other key
(15:52):
pieces that can let us send youa custom report that's going to
outline everything we justtalked about.
Here's what split, what bucketyou fall into, and and again,
not just the owner's payingprofit, but also what the other
percentages we would recommendwould be.
And then beyond that, if youwant that customized, because,
like I said, these are generaltargets.
It's rare that we talk to apractice who.
(16:15):
This is exactly what they need.
So if you want somebody to getto know you, get to know what
you're looking for, get to knowyour personal, get to know what
you're looking for, get to knowyour personal goals, your
business goals, and help craftand create that game plan, that
target.
We have a link in the shownotes always to schedule a free
call with one of our coaches.
They'll get to know you andlearn about what you're trying
(16:36):
to do and then share how ourcoaching program can help you
put this money system into placeand build a business
financially supporting you andwhat you're trying to do.
All right, take a look, go, takethe quiz.
Go back to episode two.
If you don't know much aboutProfit First, I promise you this
is going to be a revolutionaryfor your business and I can't
wait to hear about how muchyou're taking home.
(16:57):
Let me know.
Shoot us an email, go totherapybizpodcom and let us know
what are you taking home.
Has this been helpful to you tocraft your game plan in order
to pay yourself more as thebusiness owner?
Thanks for joining us on theTherapy Business Podcast.
Be sure to subscribe, leave areview and share it with a
practice owner that you may knowIf your practice needs help
(17:20):
getting organized with itsfinances or just growing your
practice, head totherapybusinesspodcom to learn
how we can help.
A common question we get when working with a new
client is how much should I bepaying myself?
How much should I realisticallybe seeing in profitability
inside of my practice?
Well, today I'm gonna guide youthrough some targets that you
can aim for, depending on thesize of your business and what
you should be seeing as far asyour take-home pay and
profitability.
My name is Craig and I'm theowner of Daisy Financial
(00:23):
Coaching.
Our team is on a mission tomake your therapy practice
permanently profitable.
If you own a solo or grouppractice, we're here to help you
build a business that createsmore time, makes more money and
serves more people.
This is the Therapy BusinessPodcast.
(00:44):
We've always been firm believersthat you are your most valuable
employee.
You are the business owner.
For whatever reasons youdecided to start a business,
most of the time, what we see isthat it revolves around two
things, and that's to have afreedom of time and to have
control over your income andwhat you make.
And yet, oftentimes, oftentimes, we find ourselves, as you
(01:04):
likely know, making less than wethought we would or less than
we want to, and working longerhours than we thought would be
ideal, and it's taking us awayfrom the things we want to do.
This is a trap we all fall into.
And then, all of a sudden,we're wondering how can I
increase my pay?
Am I taking home what I shouldbe?
Am I even where I'm supposed tobe right now?
Am I taking home what I shouldbe?
(01:24):
Am I even where I'm supposed tobe right now?
My way off the mark?
And that fog, that not knowing,can really be overwhelming, and
it just leaves us movingforward without direction.
And so we are big believers inknowing what you should be
taking home.
This business should besupporting you financially, and
so, starting with how muchshould you be paying yourself?
And then building the businessaround that, and that's what's
(01:46):
going to help you grow in afinancially healthy way.
Because, let's face it, if youare a $200,000 a year practice
right now and you're strugglingto pay yourself, when you reach
a million dollars, it's notgoing to be any easier to pay
yourself, because as you grow,expenses grow.
You're going to need a team,you're going to have payroll,
you're going to have otherthings coming in.
(02:08):
The systems and softwaresyou're using now likely won't
work for the bigger team.
I'm discovering that now myself, that the softwares we have
used to manage internally.
They're not working now that wehave a team that's growing.
Maybe it worked when it wasjust me and an admin, but now
that we have a full team ofcoaches, we're slowly having to
(02:29):
ramp up our softwares, and thatcosts more.
So, as you grow, more expensesare introduced and it becomes
harder and harder to payyourself.
So let's dig in and talk aboutI'm going to go through four key
, what we call buckets targetsthat you're aiming for to pay
yourself.
Now, before I dig into those,though, I want to talk about the
difference between profit andowner's pay.
(02:51):
So owner's pay is your salaryfor doing the work.
This is the salary yourbusiness is paying you for
seeing clients, for doing themarketing, for managing a team,
managing softwares, whatever itis inside the business that you
are showing up and doing.
That's what owner's pay is allabout.
(03:12):
It's making sure that you'recompensated for the time and
energy you're putting into thebusiness.
I always like to say separateyourself from the business.
Pretend that your business cameand hired you as the CEO, hired
you as a clinician, and that isyour role.
Or hired you as a physicaltherapist.
Whatever type of business youhave, that's your job.
(03:32):
So separate that.
A lot of times we just get sointertwined because it's our
business, it's our baby, it ispart of our identity.
It's hard to separate that.
But when it comes to thefinances and it comes to scaling
, I think it's vital that weseparate ourselves from it and
treat ourselves with that levelof respect, like if you went and
applied for a job.
So your business is paying youowner's pay.
(03:54):
That's again, that's yoursalary for the day-to-day work
you're doing.
Then we have profit.
Profit is what you get fortaking the risk of starting this
business.
This is your reward for puttingit all on the line.
For whether you quit your nineto five to start this, whether
you took time to ramp it upslowly or you just jumped in
(04:15):
feet first hoping for the best,there's so many levels and
degrees, but all of it boilsdown to risk that you took to do
this.
This is no different than ifyou were to start another
company or if you were to investin a company.
You're taking risk.
If you're on the Shark Tankpanel and you're investing in
one of the companies that walksin, you are taking risk and
(04:36):
therefore you are receiving apercentage of the profits.
That's what we are talkingabout, when we're talking about
profit being paid out to you.
Now, we are big believers and wehave a bunch of podcasts.
In fact, if you go back toepisode two, we talk about the
profit first system, which isdesigned to pay you profit, not
just at the bottom of aspreadsheet at the end of the
(04:58):
year when you get ready to filetaxes, it is literally money in
a bank account that's paying outquarterly bonuses.
So if you're not familiar withthat or that sounds enticing to
you, I recommend going back toepisode two and listening to
that as we walk you through howto set up a system in your
business to do that.
Now I want to talk about thefour key targets, the four key
buckets that we are looking for.
(05:19):
This is a percentage of yourrevenue that is probably going
to be ideal for you to be onetaking home as owner's pay and
two taking home in profit.
Now let me give this caveat thatevery business is different,
okay, so this is a general ruleof thumb.
Every business is different.
Every therapy practice isdifferent.
(05:39):
Every physical therapy practiceis different, so know that
while we're aiming for these, alot of different things can come
into play, so we want to makesure that we know that your
situation might be a little bitunique, however, without talking
to you personally and givingyou exact advice, when we work
with clients, we usually deviatea little bit from our target
percentages.
(05:59):
Once we get to know who theyare, what their goals are, what
their expenses are, what they'redealing with, then we can
customize these plans.
But I think having Generaltargets is still fantastic and
if you're aiming for these,you're gonna be in a
tremendously better place thanmost practices are out there.
Let's start with the firstbucket Now.
(06:20):
This is for any business makingbetween zero and $250,000 a
year.
So if you're making under$250,000 a year, I recommend
aiming for 50% being yourowner's pay.
So that means half of whatyou're making you're taking home
as a salary.
Now salaries to be regular.
(06:42):
We want them to be paying youout, whether it's bi-weekly,
weekly, monthly, paying you on aregular rhythm and a consistent
amount.
But about 50% of your annualrevenue is what you should be
taking home.
So if you're making $100,000 ayear, $50,000 a year salary is
what would be ideal.
Now again, everybody's a littlebit different and so in those
early years so, for example, forme, when I first started my
(07:05):
business and I was making lessthan $100,000, when I quit my
job teaching, when I lefteducation to launch this
business full-time, I had totake home about 70% in order for
me to make ends meet.
Now, my expenses were low.
It was just me.
I didn't have an office.
I had a few expenses here andthere.
Maybe a few hundred dollars amonth was what my overhead
(07:27):
expenses were.
So I was able to make it workon about 70% as I grew.
So I was able to make it workon about 70% as I grew, I slowly
brought that percentage downand started aiming for 50%.
So just know wherever you are.
Today doesn't have to be.
I'm not saying today go out andstart taking home 50% of your
money.
I don't know if you can affordto do that.
You might need to take homemore.
(07:48):
So figuring out where you arenow and then slowly aiming for
this I know it's weird to say Itook my percentage down by 20%.
That doesn't mean I took a paycut.
That just meant as my revenueincreased, I slowly decreased
the percentage I was taking home.
I do this so that I have moneyfor growth.
(08:08):
So I'm allocating morepercentage points to operating
expenses.
Now a lot of you listening maybe thrilled as a solopreneur,
maybe you're making $150,000 ayear in revenue and you're like
I don't want to hire a team, I'mjust happy doing the work,
seeing patients, seeing clients,and this is where I am, and so
that's again boils back to maybeyour percentage is always going
(08:31):
to be heavier on the owner'spay side because you're not
trying to scale, you don't wantmoney for marketing.
You're seeing as many clientsas you want.
You got enough clients comingin to support that, and so you
may be happy with taking morehome, and that might be the best
route for you.
Again, in general, we're aimingfor 50% take-home pay.
Now, on the other side of this,it's what we call the 55 split.
(08:54):
So 50% for take-home pay andthen 5% going into profit.
We recommend having an accountnicknamed Profit and 5% of
everything you make goes intothat account.
Now, this goes across the boardfor all of these, but at the
end of the quarter you can takewhat's in that account.
We usually say take about halfof it home as a bonus, as a
reward to you for being thebusiness owner, and the other
(09:17):
half can stay for savings,retained earnings, giving you a
emergency fund cash reserve inthe business.
Once you hit that $250,000 mark,your needs are gonna change.
So if they haven't already, ifyou haven't already started
hiring a few team members,you're gonna be at that place
where you are, you're going tostart hiring people.
(09:37):
They're going to start takingwork off your plate.
They're going to start takingover some of the day-to-day work
that you've been doing fromyour plate.
We're going to start decreasingyour salary percentage, your
owner's pay percentage, andincreasing your profit
(09:58):
percentage.
We want you to shift more intothat business owner role slowly
and be compensated as a businessowner, and less for the
day-to-day work you're doing.
So as we move into that$250,000 range, this next range
is from $250,000 to $500,000.
So when you're in that $250,000to $500,000 range, we recommend
a 35-10 split.
(10:20):
This is 35% of what you'remaking going home to you in
salary and 10% going into thatprofit account.
Now, same thing as I saidearlier, where I don't expect
you tomorrow to start payingyourself 50% as you approach
$250,000, it's not, you'repaying yourself half of 250 and
the day you hit $250,001, nowyou're like, okay, we're cutting
(10:45):
our pay down to 35%.
It's gradual.
We never want you to suddenlytake a pay cut in your business.
It's just like what I wassaying earlier when I was taking
it from 70% down to 50.
As revenue grows, when you hit250, usually as you're going up
from 250 to 300, you're justslowly bringing that percentage
down.
(11:05):
You're slowly you're going totake home the same amount, but
if you're taking home 100,000,that 100,000 compared to 250 and
then compared to 300 is asmaller percentage.
If you kind of get what I'msaying.
As your revenue is going up,your percentage is naturally
going to go down and we're goingto start allocating more to
profit.
So, from $250,000 to $500,000,35% owner's pay, 10% profit is
(11:30):
what we recommend.
Now, as you move on and goingback to this, so you may notice,
55, 50 and 5 is 55% total, 35and 10 is only 45% total.
So why are we taking homes less, 10% less between profit and
(11:55):
owner's pay?
That goes back to as you'rescaling, you're going to need
team members, which means you'regoing to need more money for
operating expenses.
As you grow, you're going toneed more for overhead, for team
, for payroll, and so we want tobe mindful of that and allocate
more percentage points to thatand that will show up as we
reach this next bucket.
So this is the $500,000 to amillion dollar business.
So if you pass that $500,000threshold up to a million
(12:17):
dollars, we recommend a 2015split.
So 20% coming home to you asthe business owner, 15% going
into profit.
Once again, you'll noticethat's 35% total, which means we
have an extra 10% going towardoperating expenses, giving you
more money to grow your team, todo all the things you need to
(12:38):
do Now.
At this point, you may befunneling money into paid
advertising.
There may be a lot of differentthings that you are doing
financially in order to scaleand grow.
Usually, when you're in thatfirst tier that 55, it's slow
growth, right, it's a lot moreorganic.
It's less cash being funneledinto ads and into different
growth mechanisms.
It's you kind of boots to theground, hitting the pavement,
(13:02):
getting clients doing what youcan.
Now, as we scale and grow, wehave more cash and your time is
probably more valuable at thispoint, and so this is usually
where we see businesses startingto turn around and reinvest up
some of their expenses intoadvertising, into marketing and
into scaling.
So a 2015 split is 20% goinghome to you as the business
(13:23):
owner, 15% going home or goinginto that profit account.
So you can see the shift herehappening 20%.
So when you hit that 500K mark,20% is going to be about
$100,000, right?
So that means we're keeping youaround 100.
And then when you get closer tothat million dollar mark,
(13:43):
that's about 200k coming home toyou in salary.
So just keep it in mind usuallyin those first three buckets
we're trying to keep you around100k coming home.
And then once you hit thescaling part, that's where the
real money gets to come home.
That is salary talk, right?
So I'm not even talking aboutthe 5%, 10%, 15% that you're
(14:05):
taking into profit.
So bear that in mind that wemay say and when you get to the
2015, you're taking home 100K insalary, but also 15% of it is
going into profit and you'retaking that home as well.
So that's gonna probably be.
I don't have a calculator infront of me, but let's just say
another 25, 30,000 coming hometo you on top of that in bonuses
(14:27):
, all right.
Lastly, a million dollars, 1million to 5 million.
Usually we recommend a 10 10split.
That's 10% salary, 10% profit.
Once again, we're not sayingcut your salary when you hit
that million dollar mark.
I was just saying 20% of amillion is 200K and then all of
a sudden you pass a million.
(14:48):
All right, now we're cutting itdown to 10%.
So I'm cutting my salary inhalf.
It's gradual.
So as you pass that milliondollar mark we're gonna slowly
just bring that percentage down,not cutting your pay.
So a 10-10 split, this is theleast we cut down what you're
taking home.
So we don't go below thisoverall 20%.
(15:09):
We are not going to funnel moreinto operating expenses at this
point because as you scale wewant to try and keep it at this
healthy balance.
We do have a free quiz on ourwebsite that's going to tell you
exactly what bucket you belongand it's going to go through
exactly what bucket you belongand it's going to go through
some detail on what these looklike, how you can kind of keep
track and keep a pulse on it,and then also what percentage
(15:31):
should be going into operatingexpenses depending on your tier.
We didn't get into that today.
I really wanted to focus onowner's pay and profit on
today's episode.
But if you go toquizcraigdaceycom, I'll also
link it in the show notes below.
You could take a free quiz.
It's just going to ask you ahandful of questions to get to
know your industry, yourbusiness size, a few other key
(15:52):
pieces that can let us send youa custom report that's going to
outline everything we justtalked about.
Here's what split, what bucketyou fall into, and and again,
not just the owner's payingprofit, but also what the other
percentages we would recommendwould be.
And then beyond that, if youwant that customized, because,
like I said, these are generaltargets.
It's rare that we talk to apractice who.
(16:15):
This is exactly what they need.
So if you want somebody to getto know you, get to know what
you're looking for, get to knowyour personal, get to know what
you're looking for, get to knowyour personal goals, your
business goals, and help craftand create that game plan, that
target.
We have a link in the shownotes always to schedule a free
call with one of our coaches.
They'll get to know you andlearn about what you're trying
(16:36):
to do and then share how ourcoaching program can help you
put this money system into placeand build a business
financially supporting you andwhat you're trying to do.
All right, take a look, go, takethe quiz.
Go back to episode two.
If you don't know much aboutProfit First, I promise you this
is going to be a revolutionaryfor your business and I can't
wait to hear about how muchyou're taking home.
(16:57):
Let me know.
Shoot us an email, go totherapybizpodcom and let us know
what are you taking home.
Has this been helpful to you tocraft your game plan in order
to pay yourself more as thebusiness owner?
Thanks for joining us on theTherapy Business Podcast.
Be sure to subscribe, leave areview and share it with a
practice owner that you may knowIf your practice needs help
(17:20):
getting organized with itsfinances or just growing your
practice, head totherapybusinesspodcom to learn
how we can help.
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