JAJT
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150k net profit - take out taxes.... the rest ALL goes to family living expenses (family of 4) so no....... no room to hire employees
Here's the thing about being an entrepreneur that's never stressed enough:
You can't live on 100% of your profits if you want to grow. It's just not realistic.
If you spend 100 bucks to make 200 bucks, live on the profit of 100 and put the other 100 back into your business - where have you moved? Nowhere. You'll do this for eternity.
I've made the mistake of living on profits earlier than I should have in my businesses in the past and it was a hard lesson to learn.
Honestly, I don't know where you live or what you do but if we take away, say, 30% for taxes, you are living on $105k for a family of 4!! That may not be a millionaire's lifestyle but that should be pretty damn comfortable for most people. Surely there's room to cut back.
Can your wife pick up a job for a while? Are your kids old enough to work?
The point is you need to get uncomfortable, cut back, and start re-investing profit for growth. Imagine how much further ahead your business would be if you could take that 105k and dump 100% of it back into the business? That's what you are giving up by living on the profits.
Edit: Actually, you'd have closer to 150k, not 105k to re-invest because you re-invest BEFORE taxes, lowering your tax burden significantly. Obviously talk to your accountant for the real numbers here but the point is if you reinvest you lower your tax burden and can put more of it to good use. By living on the profits you are evaporating cash into the government that you could be putting to better use.
If you could cut back your expenses by 20-30-40-50% for even a year or so, it would suck, but if investing 20k into advertising could bring you 20k more profit - now you are starting to get out from under the wave crashing on you and you can start moving into a better direction where you work ON your business instead of IN your business.
Just food for thought.
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