BONUS EPISODE: Ecom Scaling Show: How Much Should You Pay Yourself As An E-Commerce Brand Owner? (Ep. 5)
Episode Summary
Welcome to the Ecom Scaling Show, brought to you by Free To Grow CFO and Aplo Group! Join hosts Jon Blair (Founder, Free to Grow CFO) and Dylan Byers (Co-founder, Aplo Group) as we dive into the crucial—yet often missing—link between marketing and finance in DTC e-commerce.
In this episode of the Ecom Scaling Show, Jon and Dylan discuss how much money business owners should pull out of their e-commerce business, focusing on the distinction between salary and distributions, the evaluation of investment returns, risk assessment, liquidity, and the strategic use of debt. They emphasize the importance of understanding personal risk tolerance and creating a structured approach to financial distributions to ensure business growth and sustainability.
Key Takeaways
Paying yourself a market salary from day one helps in budgeting and financial planning.
Not all distributions are equal; consider the purpose behind each withdrawal.
Debt can enhance returns but must be managed carefully to avoid increased risk.
Episode Links
Free To Grow CFO: https://freetogrowcfo.com/
Aplo Group: https://www.aplogroup.com/
Jon Blair on Linkedin: / jonathon-albert-blair
Dylan Byers on Linkedin: / dylan-byers-046010149
Transcript
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00:00 Introduction to Ecom Scaling Show
00:23 Understanding Profit Distribution
06:07 Balancing Internal vs External Investment
12:16 Risk Assessment in Business Investments
18:43 Liquidity and Reversibility in Financial Decisions
24:06 Return on Ad Spend and Business Growth
28:04 The Role of Debt in Enhancing Returns