Closed 2021 with $312k revenue and $72k in profit (and later learned about the pain of taxes).

I was honestly stunned to realize that we managed to 7x our revenue from $42k to $312k in the span of one year.

Looking back, I didn’t realize and appreciate how good of a performance this is for a bootstrapped service-based business. And we were quite profitable too! Now, I appreciate this growth a lot more.

But it wasn’t all sunshine and rainbows because I “shouldn’t have made” that much profit for tax reasons. I didn’t have a CPA who advised me on tax matters and that bit me in the ass in April 2022. We ended up paying $15k in taxes, which is a liability that could have been avoided if I managed my profits more strategically.

So do your future self a favor, and hire someone who can advise you on tax matters as soon as you’re making over $100k in revenue. Rough figure but I think that’s a reasonable threshold.