How to Pay Yourself a Salary as a Small Business Owner & NOT Feel Guilty About It!

How to Pay Yourself a Salary as a Small Business Owner & NOT Feel Guilty About It!

Image from http://scoopak.com/wp-content/uploads/2013/12/Salary-of-the-Month-Funny-HD-Wallpapers.jpg
 
I thought this picture was hilarious when I saw it.  But the reality for many of us business owners is not that funny.  Many of us are struggling to keep the business afloat that the last thing on our minds is getting paid at the end of the month!  
 
I personally dread month-ends – and I am sure every business owner does to.  In fact this is the only time I wish I was still working for obvious reasons.  That is when your bank account that you have struggled to build up during the month takes the hardest hit!  Can be pretty destabilizing.  And the worst thing is, it has to happen every month! ;-(  
 
And like there is nothing even more worse than the worst thing, YOU – the person who does most of the work does not get paid!  🙁 🙁 🙁
 
And even more worse than what is worse than the worst thing – you get accused by so-called business-people of dipping into the business funds to try and maintain your basic needs.  Yes can be quite frustrating right?!
 
NOW!  Don’t get me wrong…

Image from http://www.careerealism.com/wp-content/uploads/2013/10/Negotiate-Salary-Without-Pricing-Yourself-Out-Of-The-Job.jpg
Many small business owners are guilty of that because many lack discipline.  Many fail to distinguish between personal funds and business funds.  Heck!  In fact many do not even have corporate bank accounts and those who do are not disciplined enough to ensure every inflow goes straight to the bank account.  No wonder at the end of the month, you have have no idea where all the money you made went to.
 
Anywayz… the time to pay salaries is coming up soon enough and yet again business owners will shortchange ourselves yet again.  Many have asked me this question and I have posted it in a Facebook group once so I thought I should post something on how to pay yourself a salary without feeling guilty at the end of the month.  
 
I have literally copied and pasted it (with of course some edits).  This worked for me in the early days and hopefully it will work for you as well. 
 
Image from http://www.centonomy.com/salary-does-it-work-for-you/
Here goes…
 
___
 
“On the personal / business finances, this is my take on it.

Many accuse business owners of dipping into the company’s purse but I can safely tell you it is the business that actually takes from you.
I put every dime I had into my business. If I wanted to be strict, I would say other sources should go to me directly not into my business. It does not work that way.  Those who say they never touched a dime probably had people footing other bills for them. 

This is what I tell people and my students who ask me for advice.

1. Every business income must go straight into the account. For that reason, I hardly take cash and ask people to pay directly into the account.

2. The truth is, you can never really pay yourself salary until you get to a point because you will only end up using it for a business expense.

3. Determine how much salary you think you deserve and then also give yourself a realistic nominal value based on what your business can afford. Eg. You are a CEO so maybe your salary should be n750k per month BUT your business can only afford N50k. That extra 700k should be recorded in the books as what your company is owing you which will help give a basis for the valuation of your business should you want to go limited and sell some shares.

4. With that 50k, you will probably still use some of it for the business so it is a tall order so this is what I do. 

I don’t spend much on myself so it is easy for me to track my finances. I have a book I record it in.

If I ask my assistant to get some petty cash for the office and say I ask him to buy me something to eat on the way back, I will record that expense as a personal one in my book. 

At the end of the month, I will compute all personal expenses and if it exceeds that 50k, I know next month, I must take out that extra.  Simply put, if I have overspent by say 20k the previous month, this means I can only do say 30k personal expense this month and vice versa. If I have not spent up to 50k, it means the office owes me but rather than take it as cash, I add to that 700k.

It takes a lot of discipline but it does work. That way you do not feel guilty when your salary pays for a sausage roll or a movie ticket. After all, why am I working if the business cannot meet my needs.

I am not talking about 250k Gucci bag needs o. I used to be a Jewellery person before but I don’t do much Jewellery anymore because I am running a lean means approach to everything. 

If I need something that I cannot afford, I ask for it. I will pray about it and put it on social media and funny enough, a friend obliges. That’s how I got my iPad mini as a wedding gift and so many other things I use in my business – things I would not have bought for myself.  I am never shy to ask if I need something.  Worst case scenario, I will get a NO.  

But I am allowed to enjoy the fruits of my hard labour. I feel if your business cannot meet your basic personal needs, then you are not running a business!”
___
 
Great!  
 
That is what works for me!  Remember, DISCIPLINE is key!  You MUST go around with a pen and paper ALL THE TIME and do not say, oh I will update it later.  When you withdraw from the ATM, write it down in the book and state what exactly you use it for real time.  Whilst buying petrol, write it in.  Whilst on the bus, write it in.  You will be better off for it.
 
You can get something this small that costs N300 or so.  It needs to be small enough so it does not weigh down your bag.
 
 
And each page must have: Date / Description / Amount.  If yours is big enough, you can add vendor (i.e. who you gave the money to).  NOTE that this does not replace your company’s expense register.  You should reconcile this with the company’s.  I include both corporate and personal expenses in this one and do a reconciliation when I can.
 
Okay!  I think I am done with this!  Please feel free to ask questions if you have any and I will be happy to help you out – preferably in the comments section below.  It would be great if you help others out with your questions so everyone learns from it.  I often find people asking me questions privately and I wish they could post it on the site instead.
 
Before I leave… I think you should read this piece I stumbled upon when looking for a picture… 
 
 
I thought it made a lot of sense.
Enjoy the rest of the month and wish me a HAPPY BIRTHDAY in advance! 😀  


OH! PS!

Please whatever the case, don't forget to:

- engage an accountant to help you properly qualify these expenses in your financial accounts; and

- factor in the tax elements of these payments and remit when due. 


Recommended Resources:


I also did 2 podcasts on this topic. Click on these links to access them:

Why You Should Pay Yourself a Salary as a Small Business Owner

How You Can Pay Yourself a Salary as a Small Business Owner


Amazing Martwayne Review!

Amazing Martwayne Review!

??????? #testimonial #Thursday!!! 

And posts like this just make the hard work worth it! Thank you so much @giselamonde our own fabulous doctor! I honestly miss your set! You all brought a lot of life to this place! #martwaynestudentsrock . . 

@Regran_ed from @giselamonde – It all started with a Dream and a burning desire to do more, be bigger and better…? . . 

Then I chased my dreams like a mad man let loose ?… .

– Did I feel pain? Yes.

– Did I lose sleep? Yes.

– Was I frustrated? Very much so.

– Did I give up? I was tempted to on several occasions but I never did, all I saw was my goal, so I pushed even harder? . .

I literally burnt candles, even became almost a recluse. I’m glad I never gave up. I believed in me. Still do. . .

Am I where I want to be yet? No. I’m still work-in-progress. Thank you to @martwayne @topewilliams for being a huge part of my success story, fantastic Fashion school and teacher! Will forever be grateful to you. ?? . .

And these friends of mine mean a lot to me because they too like me burnt candles, together! 

@liberteclothiers @perlesignature @toluaje_apparel @amamariona @significantvanity @tshbytonia @orem77us and a few others. I love you guys. . .

#martwayne #powerthroughfashion #fashion #passion #fashiondesign #instablog #Pinterest #LinkedIn #designer #fashionable #fashionaddict #fashionblog #fashiondiaries #fashiongram #fashionpost #fashionstyle #streetfashion #streetwear #style #styleblogger #stylish #trend #trendy – #regrann via Instagram https://ift.tt/2NGK6fH September 27, 2018 at 12:49PM

New Instagram Video @martwayne posted June 17, 2018 at 01:34PM

Still too tripped by this… Like WOW! Really made my day yesterday after that awful match! Well done @wizkidayo ????? . . Regrann from @instablog9ja – Wizkid makes his fashion industry debut as he walks the runway with Naomi Campbell at a D&G event in Milan – #regrann #martwayne #powerthroughfashion #instablog #instafashion #linkedin #pinterest via Instagram https://ift.tt/2JK8GKN June 17, 2018 at 01:34PM
We had a great show today on 98.9 Kiss FM Lagos…

We had a great show today on 98.9 Kiss FM Lagos…


Hello!!!!  Oh wow!  We had SUCH a great show today!  It was actually sparked off by a rant on Instagram about why fashion designers refuse to collaborate with each other.  If you missed the conversation trail, you should join us on Instagram @martwayne and air your views as well!


Then I watched another video I was tagged on where the speaker was talking about how businesses just live on survival mode and it further reinforced the the discussion I had yesterday.  But the truth is we don’t even specialize in certain areas so how can we even collaborate?!  And that was what I chose to talk about today!  

If you missed it, simply click on this link:  

I have also embedded the video for those who want to watch it here as well!

Please air your views as well.  We will also be tackling the issue of collaboration and the various ills that plague our Fashion Industry!  Honestly, we need to move beyond this point!  Hope to learn from you as well!

Meanwhile…… REMINDER!!!!!!!!

Please please please…. if you have not registered your child for our Children’s Course coming up, please register them early!  We simply cannot prepare if we don’t know the number of people coming.  Please register them today!  Teach them sewing and financial management as well!  It starts August 1st. Please do not procrastinate!  Register them now!  Simply click on this link: 


It takes you STRAIGHT to our Paystack portal so you can register effortlessly!  It will be fun I promise you and it will be really worth it!

Reach out to us on 0818 395 8856, on Whatsapp: 0809 787 6075, on Blackberry: D8E9802C or email me on twilliams@martwayne.com



OH!  For those who want to specialize in Childrenswear, we also have a Short Course in Childrenswear coming up!  Details will be available soon.  But here is the flyer!  It starts 27 August 2017.


And we were live on Facebook :-D  Enjoy the live feed of Martwayne on 98.9 Kiss FM Lagos on 7 July 2017

And we were live on Facebook :-D Enjoy the live feed of Martwayne on 98.9 Kiss FM Lagos on 7 July 2017


Yes we were!  Actually to be honest, this is the 2nd week we have been live on both Facebook and Instagram.  I haven’t posted the one that happened 2 weeks ago.  I’ll do that sometime this week.  

Why did we decide on live feeds?!  Well we realized people may not be able to tune into the show on 98.9 Kiss FM perhaps because of work or the fact that they may be outside Lagos so we brought the show to them through other means!  And I kid you not, the response has been great!  So soon enough, we will also be live on Youtube once I get the settings right!  😀 

SO what did we discuss last week?!

CREATIVITY!!!!

Work from @ms_ellysha, a student in the last stream…

So we were talking about the upcoming course this month at Martwayne – the Design, Fashion Illustration & Computer-Aided Design Course.   It is not news that we had some great courses coming up and this one has been one of our most popular Courses.  

Last week, we went live again on Facebook showcasing a student’s work as she was defending her project based on the theme “Back to the Future” and what she presented was incredible!  The picture above was part of her capsule collection  I was blown away!  The story behind the designs, the concept, the actual designs all from the theme “Back to the Future” was incredible.  And the best part is, she learnt everything FROM SCRATCH!  Here is the actual storyboard:


As I have said several times int he past, fashion goes beyond sewing.  There is nothing that gives a designer more joy than seeing his/her designs which they developed from scratch on a customer.  That really is what makes you a fashion designer and sets you apart from the rest!  And that is what this course teaches.    

About the Course:

It was developed to build your inner creativity.  If you love fashion – which we know you do… and you want to build on that talent, then this Course is for you!  It is literally 3 courses in 1 and it is packed full of what will definitely turn you into a pro!  We teach FROM SCRATCH so don’t worry if you can’t draw or anything like that.  That is what the Course is for!

The 3 parts to the Course are as follows:

Part 1:  Concept Development (Developing a Fashion Collection) & Portfolio Presentation
Part 2:  Manual Illustration
Part 3:  Digital Illustration using CAD

Options Available:

There is a weekend option for busy professionals which starts on the 15th of July (Saturdays only from 10am – 6pm) and a weekday option which starts on the 18th of July,  2017 (Tuesdays & Thursdays from 10am – 2pm).

There are also different variants to the course which you can opt for based on your time, finances and level of skill:

Option 1:  Full Course – N80,000
Option 2:  Parts 2 & 3 only – N65,000
Option 3:  a)  Part 2 OR b)  Part 3 only – N50,000
Option 4:  a)  Parts 1 & 2 only OR b)  Parts 1 & 3 only – N60,000
Option 5:  Part 1 only – N35,000

So if, for example, you draw very well but have difficulty coming up with your own designs and are fed up of copying people’s work, then you can choose Option 4b i.e. Parts 1 & 3 only.

All fees include your training materials and drawing kits where applicable but for the CAD options, you need your tablet. 

Duration is 8 weeks for the full course.  The other options have their own timetables as well but all fall within the 8 weeks depending on if you are running the weekday or the weekend option.

How to Register:

Registration is easy!  Simply pay the fees of your choice by bank or online transfer into Martwayne Limited, 023 710 3843 at any GTBank branch.

If you want to visit us ahead of time or if you have questions, please contact us on:

Tel: 0818 395 8856, WhatsApp: 0809 787 6075; Blackberry: D8E9802C or via email: twilliams@martwayne.com

Trust me when I say you will ENJOY this Course to the hilt!

Remember the Course starts this week so you need to register now!  Don’t procrastinate!  We need to prepare for you!

Okies…. now for the video.  Here is the one of the radio show.  If you can’t see the embedded video, simply click on this link.  It will take you straight to the page.   I’ll embed the one of @ms_ellysha defending her project in another post!

Have a great week everyone!  We can’t wait to have you on the Course! 😀  For more in-depth details about it, please click on this link.

Oh PS:

This is not a Sewing Course.  If you are interested in a Sewing Course, please click on this link.
Want to cut your production time in half?  Then ditch the paper and pencils and go digital!

Want to cut your production time in half? Then ditch the paper and pencils and go digital!


This picture made me laugh when I saw it!  But yes!  We tailors now use laptops!  😀 I spoke about it on our radio show on 98.9 Kiss FM on Friday and you should watch it!  I tell you this is the way to go!

Ok… so I realized that whilst promoting this Course (and I must confess, I don’t think I really promoted it that much), I never really spoke about the benefits of the Course.  So you are probably thinking… “why go digital when I can use my pencil and paper” right?

Ok… check out this scenario…

Example of a Digital Pattern and the Sewn Outfit



You make clothes for people and draft your patterns manually.  Imagine if you could do this on the system just once!  And next time someone else comes, you input their measurements and voila, the pattern comes out in their own size!

OR you run an in-house clothing production unit creating clothes in standard sizes.  Oh… imagine the torture of having to grade each pattern one by one when with just a few strokes, your work is done!

I can safely speak for myself when I say I have to be physically and psychologically prepared for pattern-making!  Having to search for paper, pencils, erasers and all what not or WORSE discover that I am out of paper is like the worst thing!  But now… you can simply work on your dining table in front of the TV.  Life does not have to be so tough anymore! 😀

And this is just a SNAP SHOT of what this course has to offer!  You can work across international boundaries as well.  I have 2 people who have reached out to me asking me to create patterns for them.  So this is you starting a new career as a pattern maker! 

Okies so ditch the pencils and paper and switch to digital patterns on your laptop!  And save yourself the headache and backache as well!  Register for our Pattern-Making & Grading with Computer-Aided Design.  

Please click on this link to watch the video about me talking about this Course.  It starts from 1:20

SO details about the Course?!  I’ll give it to you just now!

The course begins on Tuesday 4th of July 2017 and it will hold on Tuesdays and Thursdays from 10am – 2pm.  It is in 2 parts:

Part 1 is the Pattern Making bit.  It lasts for 5 weeks and costs N80,000 including your training materials except, of course, your laptop.  That you need to come with.

Part 2 is the Pattern Grading bit which is where you increase or reduce in size.  This will last an extra 3 weeks and costs N40,000 if you registered for Part 1.  

If you want just this part of the Course, it will cost N50,000 and it includes your training materials.  But to be honest, this limits you to just the manual grading portion because we can’t start teaching you about the digital workspace in Part 1. Please bring your laptop.  Oh… if you use a Mac please contact us before you register.

And that’s it really!  Easy peasy!  Trust me you will love this Course!

Registration is easy!  Simply pay the fees by bank or online transfer into the Martwayne Limited 023 710 3843 account in any GTBank OR

you can simply click on any of these links to register.  It takes you to our Paystack payment portal 😀




Excellent!  This tech age is making life so much easier! 😀

SO!

If you have questions, please reach out to us on 0818 395 8856, WhatsApp: 08097876075, E-Mail: twilliams@martwayne.com or martwayne@gmail.com or via Blackberry: D8E9802C

Oh. PS.  You need to be familiar with Pattern-making to register for this Course.  If you are a beginner, you can register for any of our sewing courses.  They all include pattern making.

Fabulous!  Please tell everyone to tell everyone!

I look forward to you joining us!  

Have a great day ahead!

PPS.

Watch out for details of our other courses:

–  Design & Fashion Illustration with Computer-Aided Design
–  Basic Fashion Course for Juniors (ages 9-16)
–  Short Course in Childrenswear.


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