PROFESSIONAL BUILDER SECRETS PODCAST

Episode 45: How Much Builders Should Pay Themselves With Russ Stephens

What would it cost to replace you? As a director, you need to be getting a market wage for what you are doing to perform that role in the business.

In episode 45 of the Professional Builders Secrets podcast, we’re joined by Co-founder of the Association of Professional Builders Russ Stephens. Throughout this episode, we go over exactly how much building company owners should be paying themselves.

Inside episode 45 you will discover

  • How much the owner of a building company should pay themselves, and if they’re actually paying themselves enough
  • The key measurments an owner needs to consider when allocating their salary
  • How to calculate your true fixed expenses
  • When you should start to become concerned about your finances
  • How to become more proactive with your finances
  • And much, much more.

key moments

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  • 1:48 Builders don’t take a regular salary
  • 3:10 Do builders pay themselves enough – and why not?
  • 4:59 Should owners pay themselves first?
  • 8:10 Designing a financial compensation plan
  • 9:59 Why wages don’t fluctuate
  • 11:26 Salary allocation, net profit and shareholder returns
  • 13:13 Documenting owner’s salary payments
  • 15:14 Factoring in true expenses
  • 16:10 Accuracy and the WIPAA calculator
  • 17:06 Key measurements to consider when paying the owner
  • 18:19 Including incentives for the owner
  • 19:47 How APB helps identify builders’ blind spots
  • 22:04 Factoring in cash reserves
  • 27:57 When to be concerned about your financial model
  • 30:33 Becoming proactive with your finances

Heading

key moments

  • 1:48 Builders don’t take a regular salary
  • 3:10 Do builders pay themselves enough – and why not?
  • 4:59 Should owners pay themselves first?
  • 8:10 Designing a financial compensation plan
  • 9:59 Why wages don’t fluctuate
  • 11:26 Salary allocation, net profit and shareholder returns
  • 13:13 Documenting owner’s salary payments
  • 15:14 Factoring in true expenses
  • 16:10 Accuracy and the WIPAA calculator
  • 17:06 Key measurements to consider when paying the owner
  • 18:19 Including incentives for the owner
  • 19:47 How APB helps identify builders’ blind spots
  • 22:04 Factoring in cash reserves
  • 27:57 When to be concerned about your financial model
  • 30:33 Becoming proactive with your finances

Heading

Russ Stephens is a Co-founder of the Association of Professional Builders, a business coaching company dedicated to improving the residential construction industry for both builders and consumers. Russ is a data analysis expert who has introduced data-driven decision making to the residential construction industry. Russ is also a proud member of the Forbes Business Development Council.

“A specialised podcast made just for the owners of custom home building companies. Extraordinary guests, valuable content and  amazing stories from other builders.”

Cheri K

5-star review on Apple Podcasts

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