Do you ever take profits from your business for personal reasons?

[Frank]

Have you ever had to take some money from your businesses profits or some other budget in your business? I've never had to, but what about you?

There are times that I do this, and it is basically because we have a structure in the business where we can take away money and replace them later. It is simply part of what we do to solve pressing personal needs when they arise.

 

[Heatman]

There are times that I do this, and it is basically because we have a structure in the business where we can take away money and replace them later. It is simply part of what we do to solve pressing personal needs when they arise.

I believe that as long as the business in question is your own, you have every right to take money from the business to sort out your personal needs. This is because that is the reason why you started the business in the first place to generate money that you can use to take care of your responsibilities.

 

[Frank]

I believe that as long as the business in question is your own, you have every right to take money from the business to sort out your personal needs. This is because that is the reason why you started the business in the first place to generate money that you can use to take care of your responsibilities.

This is correct, but the mistake that some businesses make is the owner not replacing the money when they have it, and that way, the business end up suffering from a low flow of cash. If they are disciplined enough to return funds that they take away from the business, then I see nothing wrong with what they are doing.

 

[Heatman]

This is correct, but the mistake that some businesses make is the owner not replacing the money when they have it, and that way, the business end up suffering from a low flow of cash. If they are disciplined enough to return funds that they take away from the business, then I see nothing wrong with what they are doing.

Or even become too extravagant and careless when it comes to taking money frequently from the business especially for things that are unnecessarily needed for them to spend money on simply because they know they are making money from their business. This is something that is capable of disintegrating the whole business because of lack of proper financial management.