The Roofer Who Made $50K More Without Increasing Revenue: A Profit First Case Study

Overall Summary:
In this episode of Savvy or Surrender, host Steven Young breaks down a real-world case study of a roofing company generating over $1.2 million in revenue but still feeling broke at year's end. Through implementing the Profit First methodology and the Savvy Path to Cash system, this business increased owner pay by $25,000 and net profit by $25,000—without changing their revenue. Steven reveals how proper cash flow management, strategic account allocation, and expense optimization can transform a high-revenue business into a truly profitable one.

Key Timestamps:

• [0:00] Introduction: The million-dollar revenue problem
• [4:32] Introducing Profit First methodology
• [7:53] The Savvy Path to Cash solution
• [12:16] Case study results: before and after breakdown
• [17:11] Introducing the Savvy Boss program
• [18:17] The critical question: would your business survive if revenue stopped growing?

Keywords:
Profit First, cash flow management, contractor, bookkeeping, roofing business profitability, small business financial management, tax planning for contractors, business expense optimization

Hashtags:
#ProfitFirst #CashFlowManagement #ContractorFinance #SmallBusinessTips #BusinessProfitability #SavvyOrSurrender #EntrepreneurFinance #FinancialPlanning

Contact & Resources:

• Schedule a free discovery call: meetwithsavvy.com
• Email: podcast@savvytaxstrategies.com
• Website: savvyorsurrender.com

@savvytaxes

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Summary:

Thinking about starting a business in 2026? Before you dive in, you need to understand the tax implications and financial realities of entrepreneurship. In this episode, Steven Young from Savvy Tax Strategies breaks down the critical difference between startup costs and operating expenses, using two real-world case studies: becoming a realtor or buying a franchise.

Steven shares honest insights about the emotional rollercoaster of business ownership and explains why some expenses can be deducted immediately while others must be capitalized and amortized over years. Whether you're considering a low-capital business like real estate or a capital-intensive franchise, this episode will help you understand what's truly deductible, what must be depreciated, and how to set yourself up for financial success from day one.

[0:00] Introduction: Why people start businesses at the beginning of the year

• [0:36] Should you be a business owner? The emotional reality
• [1:54] Real stories: When business ownership doesn't work out
• [3:33] The ups and downs of entrepreneurship
• [4:14] Choosing your business entity structure
• [5:35] The two critical timelines: Before vs. after starting
• [6:19] Case Study #1: Becoming a realtor
• [7:16] The 5 core tax rules every business owner must know
• [8:44] What "capitalized" really means
• [10:00] Section 179 and equipment deductions
• [10:54] Subscribe and leave a review!
• [11:34] The IRS taxes the timeline, not your intentions
• [11:54] Realtor licensing costs: What's deductible?
• [13:22] Pre-licensing vs. post-licensing expenses
• [14:09] Ongoing realtor expenses you CAN deduct
• [14:31] Can you deduct clothing, hair, and makeup?
• [16:00] Equipment, home office, and the $2,500 safe harbor rule
• [17:11] Home office deduction: Standard vs. itemized
• [19:01] Case Study #2: Franchise startup
• [19:37] Using retirement funds (ROBS) to buy a franchise
• [20:39] What must be capitalized in a franchise
• [22:18] Section 179 for tangible equipment
• [23:47] Post-opening deductible costs
• [24:26] Side-by-side comparison: Realtor vs. Franchise
• [24:36] Real story: The nurse who lost his retirement
• [25:37] Success story: ROBS loan + Profit First system
• [26:18] Introduction to Profit First methodology
• [27:03] Closing: Free discovery call offer

SEO/ Keywords:
Starting a business, business startup costs, tax deductions for new business, franchise tax rules, realtor tax deductions, capitalized expenses, Section 179 deduction, home office deduction, business entity types, LLC vs S-corp, startup expenses vs operating expenses, small business accounting, business tax planning, franchise fees deductible, real estate agent expenses, depreciation vs amortization, business startup 2026, entrepreneur tax tips, small business bookkeeping, Profit First system

Hashtags:
StartingABusiness #SmallBusinessTax #EntrepreneurTips #TaxDeductions #FranchiseBusiness #RealtorTips #BusinessStartup #TaxStrategy #SmallBizOwner #Entrepreneurship #BusinessAccounting #StartupCosts #Section179 #HomeOfficeDeduction #ProfitFirst #BusinessPlanning #TaxPlanning2026 #NewBusinessOwner #SelfEmployed #BusinessFinance

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Title:
How to Pay Yourself as a Business Owner- Consistent Paychecks, Tax Tips & Profit First Explained: Episode 18

Description:
Are you a business owner struggling with inconsistent paychecks? In this episode, Steven Young- host of Savvy or Surrender Podcast breaks down exactly how to pay yourself—no matter your business structure (Sole Proprietor, LLC, Partnership, S Corp, or C Corp). Learn the difference between draws, salaries, and distributions, how to set up your accounts for predictable income, and how to use the Profit First method to ensure you get paid—every month. Plus, get actionable tax tips to keep more of what you earn and avoid common mistakes that cost business owners thousands.

Whether you’re just starting out or looking to optimize your pay structure, this episode is packed with practical advice to help you become a savvy CEO and never surrender to the challenges of entrepreneurship.

Timestamps:
00:00 – Why Your Paycheck Feels Optional
00:31 – Meet Steven Young & The Savvy Podcast
01:37 – How Business Structure Affects Your Pay
03:23 – Sole Proprietor & LLC: Draws Explained
05:26 – The Importance of Separate Business Accounts
07:03 – How Taxes Work on Business Income
09:02 – Estimated Tax Payments & Key Dates
12:15 – Paying Yourself Like Payroll (Even Without W2)
14:00 – Partnerships & Guaranteed Payments
16:36 – S Corps: Salary vs. Distributions
19:28 – What’s a “Reasonable Salary” for S Corps?
23:11 – Why Owner Pay is Often Inconsistent
26:06 – The Profit First Method for Consistent Pay
29:15 – Setting Up Owner’s Pay & Buffer Accounts
32:10 – S Corp Tax Tips & Avoiding Common Mistakes
35:10 – How to Build a Pay Buffer for Slow Months
38:00 – Q&A, Resources, and Final Thoughts

Keywords:
how to pay yourself as a business owner, business owner salary, profit first method, owner’s draw vs salary, S corp salary, LLC pay structure, business tax tips, consistent paycheck, small business finance, Steven Young, Savvy Podcast, business owner mistakes, how to set up business accounts, estimated tax payments, guaranteed payments, owner distributions, business structure pay, entrepreneur pay, business owner financial advice

Resources:

• Schedule a discovery call: https://meetwithsavvy.com
• Get the Tax Savings Playbook: https://savvytaxstrategies.com

Don’t forget to like, subscribe, and leave a review if you found this episode helpful!

@savvytaxes

savvytaxhub.com

savvyceoalliance.com

savvyceoshop.com

meetwithsavvy.com