May 13th 2026 - Why Owners Need Extra Revenue
I've coached business owners in the past who want to treat their customers fairly and not charge higher prices even when their costs and risks increase. Its a noble thought but the problem is that its unsustainable for any business.
As an employee you're taking on the lowest amount of risk possible when you take a job. Your paycheck is guaranteed, even if the business does poorly, for the most part. But as a business owner you're taking on additional risks that an employee doesn't have to deal with. Your market could change over night, your competitors can out price you, your supplier could go out of business, your employees could do something illegal and now you have to deal with the penalties, etc. The risks a business takes on seem to be infinite, or at least quite high.
Because of this you need to take in much higher revenue than an employee in order to survive economic downturns or the results of said risk. Otherwise, you're going to go out of business and all the employees who depended on you are going to be unemployed.
You can still be noble and end up, at the end of the day, with a regular salary for yourself while saving the rest inside the business to bail you out when those risks come knocking. But don't think that the business can take in a regular salary and survive.