Budgeting for business

When keeping track of cash flow and profit for your business, do you put ALL of your expenses (business and personal) in the calculation? For example. I would consider my business expenses, but also my rent, groceries and every penny I spend on a daily basis?

I guess what I am asking is … Is the profit I am aiming for (ex: 50 000$) the money that I will have left over to spend on any extra fun stuff (ex: a trip, an online course, etc.) ? Or is part of that profit used to pay for my personal expenses (even the fixed ones like rent?)

Hope this makes sense!