PROFESSIONAL BUILDER SECRETS PODCAST

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

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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

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

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.

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