What are the Three Ways that You Make Money From Your Business?

June 9, 2025

Three Ways Business Owners Profit from Their Business

Did you know there are three distinct ways business owners can make money from their business? Most people can name one or two, but the third is often overlooked—and it’s usually the most significant.

 

Here are the three ways business owners profit:

 

Regular Wages: Many owners pay themselves a consistent salary for the work they do in the business, just like any other employee.

 

Business Profits: Owners can take home the profits after all expenses are paid. This is often distributed as dividends or owner’s drawings, depending on the business structure.

 

Business Sale: The biggest payday often comes when you sell the business. All the value you’ve built up—brand, customer base, systems—can translate into a significant lump sum when it’s time to exit.

 

Most business owners focus on regular income and profits, but don’t forget the ultimate reward: building a business that’s valuable enough to sell. That “pot of gold” at the end of the journey can be life-changing.

 

Are you building your business with all three in mind? Remember, the true wealth from business ownership often comes when you cash in on the value you’ve created.

 

Is it because business owners are just focused on living day to day? , or because they need cashflow to pay bills and debts?

 

Remember the big picture: that is, the value of the business is like a pot of gold at the end of the rainbow, and when we focus on that pot of gold, our business is better for it.


Ready to unlock the true value of your business?
If you're not just working in your business but working toward a rewarding exit, I can help. With decades of experience in business sales, valuations, and exit planning, I provide expert guidance to ensure you don’t leave that “pot of gold” behind.

👉 Get in touch today to start building a business that's not just profitable now but valuable when you're ready to sell.


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The Business Lifecycle comprises: Start Up Operation and Improvement Wealth Management Exit. Business Purchase or Start Up Whether starting a new, or buying an existing, business, the following should be considered to ensure you make an educated decision before proceeding: Pro's and Cons of the industry Business Planning Marketing strategy Registration and licence requirements Name registrations (including ASIC and Domains) Tax Structures and Asset Protection Workplace Health and Safety Tax Office Compliance Intellectual Property / Trade Marks Insurances – Prof Indemnity, Contents/Building, Public Liab, Workcover, Life, Income protection, Key Man Finance & cash flow requirements Staff and employment requirements and obligations Fixed and Variable expenses, break even analysis Management and reporting systems. Operations and Improvement Sound business operations require the right foundations. This means access to accurate numbers and key measurements in a timely manner so you know what is happening in the business at any point in time. Business owners must be able to regularly review and monitor performance, and make changes quickly. Three main areas for business improvement are: Increasing Gross Profit margins Reducing overheads, and Growing sales. Regular meetings, monitoring and implementation of your strategies enable you to quickly see improvements to your profits. Many businesses fail because of a lack of planning. It is imperative that business owners manage, monitor and measure business performance to know where changes can be made, and to see that business plans are working. Wealth Management What is wealth? To be wealthy simply means you can afford your lifestyle, now, and into the future. Business owners should manage their affairs to grow and build wealth. They should also aim at reducing their input into the business and ultimately retiring. Exit There are many ways that this can be achieved. A succession plan or exit strategy will help your business transition smoothly to the new owner – and derive more value. It clearly outlines your timeframe, expected sales value and who your targeted purchaser is. It is highly recommended to plan your exit early, the sooner the better. That way, you have time on your side to maximise the value of your business for sale. Once your timeline is set you can then clearly set measurable targets to reach your business’s full sale potential. It’s also important to know who your targeted purchaser is, being your family, an investor, a new working owner or your business team. There are many different strategies and planning solutions depending on your ideal purchaser… So start planning your exit strategy now! If you’re thinking of selling your business, send an enquiry to admin@benchmarkbusiness.com.au. One of our brokers will be happy to assist you. If you would like more information, please see tips and advice from the ATO here: https://www.ato.gov.au/Business/Privately-owned-and-wealthy-groups/Tax-governance/Tax-governance-guide-for-privately-owned-groups/Starting-your-business/