This month is tax month at Jones And Co. Styling Opticians. Yesterday I paid a six-figure corporation tax bill to the UK government. I do what I can to help them out. In the early years of my business, I paid teeny-tiny tax bills because there was not much profitability, and today I pay big, eye-watering tax bills. And the fact is, I’m happier with the big tax bills by far. There is more than enough cash to pay the bill, there’s still plenty in reserve, and there is no financial stress on the business or me to pay the tax. Which means it feels like I’m just making a big old donation to my favourite charity – the country I live in. There are 2 big lessons here.

Numero Uno: When you are growing your practice, it is imperative that you learn to understand the numbers, what they mean and how they work.

Practical financial intelligence is not a nice-to-have; it’s a must-have. Understanding your critical drivers, KPIs, P&L, cash flow, and balance sheet is not that complicated. You just need to look at it every month and want to understand it, and have someone to guide you. Then, by knowing your numbers, you can behave responsibly and make responsible financial decisions.

Set aside your tax money so it’s never a stress. Live within your means – both as a person and as a business. Never spend everything you make. Invest in the things that will make you and your business grow for the long-term: staff and training, your learning and business skills, marketing, and your client experience. Build a reserve of six months’ worth of expenses as your cash cushion as a rainy-day fund. Because there will always be setbacks and surprises.

Bill Gates understood this well. When Microsoft was a young company, he said he “came up with this incredibly conservative approach that I wanted to have enough money in the bank to pay a year’s worth of payroll even if we didn’t get any payments coming in.”

Number two: Value yourself and what you contribute to the world. Get paid what you’re worth.

This is important. Never feel bad about profitability. Your practice not being very profitable serves nobody. But your practice being highly profitable makes everybody better off.

With no money worries, you will be a happier, healthier version of you – financial stress rarely gets the best out of you as a human being. Your family will benefit from being able to live the life you want to live. Your team will benefit from having amazing jobs they love and where they can earn good money, above the average, while working for a business that invests in them and their growth.

Your clients will benefit because you can create an incredible practice that blows their mind, and that continues to improve and that lasts for a long time. Your profitability also allows you to support your community and charities in meaningful ways. And you also kick-in a lot to help your fledgling and broke country.

Whatever country you are reading this in, I guarantee your government are spending more than they have, and are swimming in debt. I just paid them £114K they wouldn’t have got if I didn’t get up in the morning and create the business I have.

Those are all reasons for you to be successful and to be proud about. Being independent and self-sufficient and making your own success is a far more fulfilling path than waiting and hoping for someone else to make your life better, like the government or the NHS or some vision plan or other organisation.

Costs go up. That’s fine. You can out-earn it. Set your prices properly. Don’t pull your punches with pricing. Don’t sacrifice your margin because you feel bad or think you don’t need that much profit. Your profitability makes good things happen.