Get the key ideas from

Simple Numbers, Straight Talk, Big Profits!

Four Keys to Unlock Your Business Potential

By Greg Crabtree and Beverly Blair Harzog
15-minute read
Audio available
Simple Numbers, Straight Talk, Big Profits!: Four Keys to Unlock Your Business Potential by Greg Crabtree and Beverly Blair Harzog

Simple Numbers, Straight Talk, Big Profits! (2011) outlines the essential, interconnected elements you need to know that affect your company’s longevity and growth. Through a series of simple steps, you can create a more productive workplace to ultimately boost performance and build greater wealth.

  • Entrepreneurs thinking about starting a new business
  • Business leaders working for companies in an early growth phase
  • Start-up founders

Greg Crabtree co-founded a certified public accounting firm that advises and assists entrepreneurs.

Beverly Blair Harzog is a credit card and debt expert, and a prominent public advocate in the area of personal debt and lending.

Go Premium and get the best of Blinkist

Upgrade to Premium now and get unlimited access to the Blinkist library. Read or listen to key insights from the world’s best nonfiction.

Upgrade to Premium

What is Blinkist?

The Blinkist app gives you the key ideas from a bestselling nonfiction book in just 15 minutes. Available in bitesize text and audio, the app makes it easier than ever to find time to read.

Discover
3,000+ top
nonfiction titles

Get unlimited access to the most important ideas in business, investing, marketing, psychology, politics, and more. Stay ahead of the curve with recommended reading lists curated by experts.

Join Blinkist to get the key ideas from
Get the key ideas from
Get the key ideas from

Simple Numbers, Straight Talk, Big Profits!

Four Keys to Unlock Your Business Potential

By Greg Crabtree and Beverly Blair Harzog
  • Read in 15 minutes
  • Audio & text available
  • Contains 9 key ideas
Upgrade to Premium Read or listen now
Simple Numbers, Straight Talk, Big Profits!: Four Keys to Unlock Your Business Potential by Greg Crabtree and Beverly Blair Harzog
Synopsis

Simple Numbers, Straight Talk, Big Profits! (2011) outlines the essential, interconnected elements you need to know that affect your company’s longevity and growth. Through a series of simple steps, you can create a more productive workplace to ultimately boost performance and build greater wealth.

Key idea 1 of 9

Business owners should always pay themselves the correct market wage.

Here’s a surprising figure: 90 percent of small business owners pay themselves less than a fair market wage.

And in many ways, this is a rational choice: After all, by lowering their own wage costs, business owners can make pre-tax profits look much healthier.

But despite this, business owners should always pay themselves the correct market wage. There are two reasons why this should be the case.

First, not paying yourself (or your employees) a market-based wage actually undermines your business. Pre-tax profits and labor expenses are key figures which affect important financial measures such as labor productivity, or the percentage of pre-tax profits to revenue.

As we’ll see in later blinks, these two metrics are crucial in defining the success of your business. And artificially altering them could affect your ability to grow your company.

You should also know that the U.S. Internal Revenue Service has included this tactic – that is, underpaying wages – in a list of “dirty dozen” tax scams used by closely held (or “S”) corporations. Accordingly, the federal tax agency is increasingly choosing to audit firms suspected of employing this practice.

Second, paying yourself a market-based wage is crucial when it comes to selling your business or making an exit. That’s because a firm’s profitability is a key factor in determining its fair market value.

So when an outside party looks at your books prior to purchasing your company, artificially lowered wages could cast doubt on your company’s value in the eyes of a potential buyer.

Alternately, paying yourself a market-based wage from the outset will spare your business cash flow problems (and the nasty surprise of diminished profits) if you decide to make an exit and replace yourself with an outside CEO who’s expecting to earn market wages.

Upgrade to continue Read or listen now

Key ideas in this title

Upgrade to continue Read or listen now

No time to
read?

Pssst. Sign up to your secret to success: key ideas from top nonfiction in just 15 minutes.
Created with Sketch.