TCF454: Contractor Q&A: How should I pay myself as a business owner?

Listen in as Tom and Dan answer your questions about whether you should pay yourself an hourly wage or the owners' salary as the owner of the business, calculating your net profit, the best way to build your brand, and the right time to cut the cord and go full time.

 

In this episode, we talk about… 

• Question 1: Should I pay myself an hourly wage as the owner of the business? And how do I calculate my net profit?
• Pay yourself an owner salary instead of an hourly wage
• Put your net profit into your overhead
• Net Profit does not include what you pay yourself
• As the owner pay yourself a salary ≥ what you would make doing the same job in somebody else's company

 

Question 2: The pre-qualifying step in the sales process makes me worry that I will lose business. How do I overcome this mentality?

• Taking control through the SHIN-FU and not writing up bids like everybody else
• Get rid of the people that are wasting your time
• Finding people that value the process will resolve the issue
• Telling yourself that you’re worth the money that you’re charging
• If you know your production rates, you can give prices confidently

 

Question 3: What would be the best advertising company to promote my website?

• Talk to some people that work with contractors, and can provide data—analytics of how they increase their site visits
• The best advertising company is going to first identify what your issue is
• Identify through Google analytics, are people finding your site
• Often the traffic issue is because there’s a problem with your site framework, the title pages or tags
• If you’re getting traffic and it's not converting to leads—there's an issue with your website
• Ads don't work if you got a substandard site

 

Question 4: When it comes to building your brand, what is the number one thing you can do? 

• Your brand is the story that is told when people see you or think of you
• To build your brand is to build your personal brand
• Pay attention to the little details
• Be intentional about the story you want to tell about you and your company

 

Question 5: What time is the right time to cut the cord and go full time

• Start your business from a position of strength and not desperation
• Have a hustle attitude or hunter mindset—to start your business from a position of desperation

 

Resources: 

To have your questions answered by Tom and Dan shoot us an email to help@thecontractorfight.com with the subject “Podcast” and we’ll try and answer it on a future show.

 

Follow Tom on Instagram at https://www.instagram.com/realtomreber   

 

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