The Best Way Of Financing Equipment

By Hugh Bowman / November 7, 2020

When you’re buying equipment, should you finance it or should you pay for it out of cash? Now, obviously it depends on how much it really is, but here’s a perspective for you. There’s a business that I’ve worked with for quite a long time and they’re doing okay, but they’ve never actually pulled a lot of money out of the business. That’s because they’re endlessly buying more equipment and renovating offices and machinery and the like. You might say, “Well, that’s supporting the growth of the business,” But, it means they haven’t pulled money out. Another option of buying a new piece of equipment and financing it, it means that you can take the money out of the business. But, there’s some pros and cons there. For example, if you’re financing equipment, it’s probably going to be a higher interest rate, but the benefit is that at least it’s … Read more

Read More

How Much Should I Take Out Of My Business?

By Hugh Bowman / October 20, 2020

How Much Money Should I Take From My Business For Me? What I want to talk about today is the mindset of a business owner, with respect to the amount of resources it requires. You see, a great business in my view is that you put not much time into, not much money, and it churns lots of cash out. And in reality, that’s a pretty tall order. And especially with when you’re talking about trades business and things that I kind of work with. They all put lots of labor and lots of money into equipment and things like that. But I’ve met many business owners recently that have spent many years working hard in their business and growing assets in their business, but they’ve never actually taken out any more than a wage. Don’t be a miser. I see that as a big failure, because what about paying … Read more

Read More

How Much Should You Be Paying Yourself

By Hugh Bowman / September 29, 2020

How Much Should You Be Paying Yourself & Other Directors Today I want to talk about how much should you pay yourself? You see, most business owners don’t actually know much they pay themselves because they’re putting it back into the business. That is until they have a business partner who works less in the business or has a different skill level. Sometimes this can change over time. All of a sudden they go, “Well, hang on. I’m doing more work and I’m getting paid the same amount,” or something of that nature. Here’s the best way to think about it in my view, is that … Pay yourself a wage that would reflect the cost there would be to employ someone else to do the same job. As long as you satisfy that, it’s fair on everyone. The Right Amount To Pay Yourself Related To The Type Of Work … Read more

Read More

How To Read A Balance Sheet

By Hugh Bowman / May 30, 2019

As a business owner, understanding what is in your Balance Sheet is fundamental in growing a great business.  This video discusses what things are and why in your Balance Sheet.

Read More

How to read a Xero Profit and Loss

By Hugh Bowman / May 27, 2019

As a business owner, understanding what is in your Profit and Loss is fundamental in growing a great business.  This video discusses what I like to see in a Profit and Loss for a small business.

Read More

Break Even for your business

By Hugh Bowman / May 23, 2019

Have you even wondered how many sales or turnover you need to know that you are not losing money?  Or if you are purchasing a new piece of equipment, how much work it needs to do to make it pay? Or a sales person, how many sales they make to cover their costs?

Read More
reinvesting back into your business

Reinvesting back into your business?

By Hugh Bowman / February 20, 2019

This is never an easy question for most business owners that I work with.  Why?  Because they are so business on the tools they’ve never had time to stop and consider it.  So maybe this is good opportunity to take a little time to consider one of those basic elements of business that could have a huge impact on your financial results.

Read More

How much do you pay yourself?

By Hugh Bowman / December 5, 2018

How much you pay yourself as a business owner will have a remarkable impact on your personal and professional life. Many business owners struggle with the concept of paying themselves a wage because they think, as the owner, they should only be taking profits.

Read More