Flip the Script: Plan Your 2025 Goals Starting with Profit and Pay

As a business owner, you’ve probably been chasing top-line revenue as the ultimate measure of success. But here’s a truth bomb: Revenue is meaningless if your profit and owner’s pay aren’t where they need to be.

For 2025, let’s flip the script and start your planning with what truly matters—your desired profit and pay.

The Problem with Starting from Revenue: Many business owners set ambitious revenue goals without considering whether those goals align with the profit they need or the lifestyle they want. Too often, this results in high revenues but low take-home pay or, worse, financial stress.

A Better Way to Plan: Start with the end in mind:

1. Desired Profit: How much profit do you want to retain at the end of the year? This is the money that fuels growth, builds reserves, and creates stability.

2. Owner’s Pay: What do you need to live the life you envisioned when you started your business?

   
   

Once these targets are set, work backward to determine the revenue needed to achieve them, taking into account your expenses, taxes, and cost of goods sold (COGS).

A Simple Formula for Success:

Revenue Target = Desired Profit + Owner’s Pay + Expenses + Taxes /1−COGS 

Example:

• Desired Profit: $100,000

• Owner’s Pay: $120,000

• Annual Expenses (including taxes): $250,000

• COGS: 30%

  
  

Using the formula:

Revenue Target = 100,000+120,000+250,000/(1−0.30) = $671,429

For this example, your revenue target is $671,429—not a random number but one driven by intentional goals. And real numbers that drive your business such as your current annual expenses and COGS rate of 30%.

Why This Works: 

Starting with profit and owner’s pay ensures that your goals align with your personal and professional needs. It shifts the focus from “hustle harder” to “work smarter,” helping you make intentional decisions about where to invest your energy and resources.

It’s not too early to start planning for 2025. Let’s make it the year where your business works for you—not the other way around. If you’d like help building a financial plan that ensures your profit and pay goals are met, let’s connect. I’d love to show you how to reverse-engineer your success!

When you start your planning with profit and pay in mind, you’re not just setting goals—you’re building the foundation for sustainable growth and personal fulfillment. Let’s make 2025 your most profitable year yet!