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Deciding when to start paying yourself for your business depends on various factors, including the financial health of your business, your personal financial needs, and your long-term goals. Here are some considerations to help you determine when to start paying yourself for your business… Business Viability Before paying yourself, ensure that your business is generating sufficient revenue and profitability to support regular salary or owner’s draw payments without jeopardizi

The Strategy Diamond is a framework developed by Donald Hambrick and James Fredrickson that helps organizations analyze and understand their strategy by examining five key elements, represented as facets of a diamond. The Strategy Diamond provides a holistic view of strategy and helps align different aspects of the organization’s strategy to create coherence and effectiveness. The five facets of the Strategy Diamond are… Arenas Arenas represent where the organization chooses

The threshold for what constitutes a business can vary depending on various factors, including legal, regulatory, and practical considerations. There isn’t a specific income threshold that universally defines when an activity transitions from a hobby or side venture to a formal business. Here are some general guidelines to consider… Intent and Effort One key factor in determining whether an activity qualifies as a business is the intent and effort put into it. If you are acti

Getting an LLC in Kansas isn’t overly difficult. It involves completing and submitting the necessary paperwork to the Kansas Secretary of State, which typically includes filing Articles of Organization and paying a filing fee. You’ll also need to appoint a registered agent with a physical address in Kansas. While the process itself is relatively straightforward, it’s vital to ensure compliance with all legal requirements and understand the implications of forming an LLC for y

The percentage of income you pay yourself from your LLC can vary depending on several factors, including the financial health of your business, your personal financial needs, and your business structure. Here are some considerations to help you determine an appropriate percentage… Business Profitability Consider the profitability of your LLC. If your business is generating consistent profits and has sufficient cash flow to support owner distributions, you may be able to pay y

The seven key components of a comprehensive business plan typically include… Executive Summary A concise overview of the business plan, summarizing the key points and objectives of the business, including its mission statement, products or services, target market, competitive advantages, and financial projections. Business Description Detailed information about the nature of the business, its history, legal structure (e.g., LLC, corporation, partnership), ownership, location,

Yes, you can have an LLC that doesn’t make money. An LLC (Limited Liability Company) is a flexible business structure that offers liability protection for its owners (members) while allowing for various financial scenarios, including situations where the business is not profitable. Here are some reasons why you might have an LLC that doesn’t make money… Startup Phase Many businesses operate at a loss during their startup phase as they incur initial expenses for market researc

The six principal components of business strategies are often summarized using the acronym “SWOT,” which stands for Strengths, Weaknesses, Opportunities, and Threats. These components are essential for assessing internal and external factors that can influence the success of a business. Here’s a brief overview of each component… Strengths Strengths are internal factors that give a business a competitive advantage or unique capabilities. These can include factors such as a str

The five essential components of strategic planning provide a framework for organizations to develop and implement effective strategies to achieve their long-term objectives. These components typically include… Vision and Mission Vision and mission statements articulate the organization’s purpose, values, and aspirations. The vision statement describes the desired future state or long-term goals that the organization aims to achieve, while the mission statement defines its co

The 50-30-20 rule is a budgeting guideline that suggests allocating your after-tax income into three broad categories: needs, wants, and savings. Here’s how the rule breaks down… 50% for Needs Allocate 50% of your after-tax income to cover essential needs, such as housing, utilities, groceries, transportation, insurance premiums, and minimum debt payments. These are expenses that are necessary for your basic living requirements and financial stability. 30% for Wants Allocate