Recap
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
Download your copy of the REM Money Metrics here: www.theremarkablepractice.com/podcast-ep278-moneymetrics
Subscribe to our newest podcast “Build Your Remarkable Practice” here: https://podcasts.apple.com/us/podcast/build-your-remarkable-practice-for-chiropractors/id1734107477
Schedule a Brainstorming call with Dr. Pete
Dr. Stephen’s Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic Business
Tweetable Quotes
Accounting is the language of business, and if you don’t speak accounting, you don’t understand your business.”]
There’s three ways you get paid. One, your salary for the work that you do. Two, the distributions of profit. Three, the add backs, the fringe benefits of being able to run certain expenses through the business.”]