Why Knowing Your Bottom Line Is the Most Liberating Thing You Can Do for Your Business

small business May 15, 2025

What is your Business bottom line?

At its core, your bottom line is the minimum amount of revenue you need to cover your business expenses and pay yourself. You heard that right, PAY YOUR SELF. Which means that your bottom line is how much does your lifestyle need for you to make in order to be successful. Your bottom line is the number that tells you whether you're building something sustainable and scaleable or you just have a very expensive hobby.

Why does this number feel so daunting?

  • You’re afraid of what the number might tell you.
  • You worry that you’ll have to raise prices, cut expenses, or make tough decisions.
  • You think knowing the number makes you more responsible for your business success (spoiler: you already are).

But avoidance doesn’t protect you. It just delays the inevitable.

If you don’t know your bottom line, you’re operating blind. 

You don’t know when you’re thriving, when you’re barely breaking even, or when you’re silently bleeding cash. Also you're going to feel bad, uncertain every time you make a difficult financial decision for your business or for your personal life. You'll start justifying every business expense as an investment, when it reality it might just be a money pit.

Why knowing your bottom line is freedom 🎉

Once you know your bottom line, everything gets clearer:

✅ You can make confident pricing decisions.
✅ You can plan for growth — instead of just hoping for it.
✅ You can see when you’re in surplus and decide exactly how to reinvest or pay yourself more.
✅ You can spot problems early — before they become disasters.
✅ You can take real control of your business and life.

Knowledge gives you power. Power gives you options. Options give you freedom. It’s that simple.

How to figure out your bottom line

Here’s a quick breakdown:

  1. Add up all your monthly business expenses.
    Think rent, software, contractors, subscriptions, inventory, marketing, etc.
  2. Add your personal salary.
    (Yes, you need to pay yourself — otherwise you’re just building an expensive hobby.)
  3. Add your tax savings.
    Set aside around 25–30% of your net income for taxes (depending on where you live and your business structure).
  4. Account for debt repayments and savings goals.
    If you want your business to truly grow, these are non-negotiables.

The total? That’s your minimum monthly revenue goal. That’s your baseline. That’s your bottom line.

Now, I get it — facing the numbers can be uncomfortable. But comfort isn’t what builds empires. Clarity does. 

If you want your business to not just survive but thrive, knowing your bottom line is the first step toward treating your business like the powerful, profitable vehicle it’s meant to be.

Ready to stop guessing and start building with certainty? Let’s talk.

We help small business owners just like you get crystal clear on their numbers — and unlock the growth they’ve been working so hard for. Reach out today!

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