Why I Chose to Cut My Business Revenue in Half

Why would anyone ever decide to cut their revenue in half? Is it possible to do so while actually INCREASING your profit margins and free time? I take a deep dive into answering this in this video.

My most “successful” year was actually 2020. I made $61,861 (by the way that is over double what I made working for an employer 2 years prior, but I digress). Although that number may look shiny, we obviously need to factor in Total Expenses ($12,319) and Taxes ($12,386).

I think we need to pay WAY more attention to the FINAL TAKE HOME INCOME ($37,157) number as I believe your revenue is a vanity metric too many people try to chase.

READ MORE: 2020 review + my struggle with comparison this year and 2019 review

So let’s look at 2021. The year I went on a 3 month maternity leave…

My total income was $49,438. I spent $8,596 in expenses so my profit after taxes was $30,631.

READ MORE: A look back at 2021 – year in review, 

2022 – $41,007 total income // $4,317 in expenses // $27,517 in take home

READ MORE: Business recap – 4 years in biz (I share how much I made in year 1, 2, 3, & 4)

2023 – MY WORST YEAR, but really my best (3 month maternity leave) – $35,748 total income // $5,083 in expenses // $22,999 in take home

READ MORE: How I Am Making $2,000-$5,000 a Month During Maternity Leave as an Entrepreneur

As you can see, my revenue was cut IN HALF from 2020 to 2023, however my time spent in my business was about 5-10 hours A WEEK.

All of a sudden 23k take home looks pretty good (remember I spent 5 years building my business to get to this point).

READ MORE: Lessons I Learned in my Business in 2023 + Quarterly Revenue Breakdown

Why did I choose to take a pay cut?

  1. Daycare for two is expensive so although I didn’t bring in as much, I also didn’t need to pay for daycare
  2. I wanted to be a SAHM my whole life, 2023 gave me the space to experience that
  3. I didn’t want to take as many web design projects because they weren’t bringing me as much joy. I decided to focus on affiliate income and my courses

What expenses did I slash in my business?

I didn’t invest in anything in 2023. Like no courses or memberships or coaches. Usually I invest in one thing (like that) a year. That’s the major thing. I also got rid of my course platform (Podia) which was $396/ year and switched to ThriveCart which is a one-time fee.

READ MORE: 8 reasons I moved all my courses to ThriveCart 

2024 – This year I am investing WAY more in my business (in January I invested in a $4,000 course/ funnel strategy), I also will probably need to buy a new computer ($1,800+), and then I have all the other expenses ($4,000 – $5,000). In addition, I have my kids in daycare twice a week. I am ready to see my business GROW!

READ NEXTWhat Made Me Quit & the Biggest Lessons From My 5 Years in Business

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