WHY YOU SHOULD PAY YOURSELF A SALARY AS AN ENTREPRENEUR
Ever thought about the value of the time you invested in your business? The money spent and perhaps the compensation you deserve?
Do you, for instance, cut your own salary when there is little or no cash flow? Yet ensure all your employees get paid, rent and taxes as well. Honestly, I agree that sometimes it is just unavoidable, but it doesn’t have to be the default payment structure in your business.
It probably never occurred to you that failing to pay your own salary is not being selfless neither is it being smart. Some schools of thought advise start-up entrepreneurs not to pay themselves a salary for a period of 6 months. While I understand their point of view but do not agree it is the best approach.
In fact, it is unsustainable and should be considered a last resort. You need to realize you are running a business and if you keep skipping your own salary, how then do you achieve your business goals?
Thinking the business is doing so well forgetting that you have not considered your own payment.
Episode 7 of Business Nuggets by Martwayne was made to address some questions you need to think about. Which might help you understand the need to pay yourself a salary.
Consequently, the 8th episode of this series will be on “How To Pay Yourself a Salary”
Click the podcast below to listen.
Some of those questions are;
⇒ How much is my business owing me in salary?
⇒ Have I really thought about the time invested in the business?
⇒ What do I need to consider before I consider a third party?
At the end of this episode, you will know why your business needs to be able to pay you some stipends no matter how little it is. Consequently, you will decide what to do it. Spend it? Invest it into the business? Totally up to you!.
Take note, it is a business and if you had hired someone else to do the task, you would have to pay the person anyway…You derve to be compensated for your hard work!!!
Business Nugget By Martwayne
A podcast series of short entrepreneurship tips that will help kickstart or grow your business and help you on your entrepreneurship journey. Each episode is created to help you turn your passion to profit and into a viable business.
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