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by true_religion
5106 days ago
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According to the article, if you have one business and still work for someone else then the business is not profitable. It basically states that multiple-streams of income means the smallest stream doesn't deserve the definition "profitable". So questions like mine are valuable to fleshing out this theory.... |
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He's talking about the difference between paying yourself and not, in a round about way of getting to this concept: not paying yourself a sustainable wage leaves nothing for investors (even if the "investor" is just you.)
If you have five separate entities that combine to pay you a salary, you win. Any extra money can be used to grow one or more of those businesses. ..if they are all tied together in ownership (for example, they are all owned by one person).
If those 5 entities are not tied together in some way, then no, they are not sustainably profitable on their own. That is, each entity does not throw off enough cash so that there is some left over for reinvestment unless you combine them all together.