Small Business Tips Video | When Should a Small Business Owner Start Paying Themselves


What you’re about to see is answers to the question; Just how long was it before you might pull a wage or salary from your business? I think you’ll find this interesting. We didn’t take hardly any money from the business, not a salary, no profits or anything for around 9 years. Oh, probably 5 years. Again, I was playing regular and so I relied upon that and just put everything I made at the store back to it. Oh, it had been a lengthy time. So anybody starting a business should recognize that you can’t get a salary for a lengthy time. I don’t know if that sounds as you, it certainly seem like me when I ran among my companies. When I was on the highway I’d the opportunity to meet up David Frick. He owns an organization called Success Ventures in Louisville, Kentucky. He and I mentioned plenty of different subjects. One had to do with paying yourself as an owner of a tiny business.

Listen to what David needs to say. Success Ventures is focused on helping businesses get structured the right way to allow them to be sustainable and they can be scalable. Among the biggest things I speak about is payroll. It’s huge for me, and I think there’s 5 key groups that need to be paid. The master, they need to be paid simply for owning the business. They don’t really have to do a lick of work, they only own the business and they require a paycheck every month. Maybe every quarter. If they are a manager if they’re actually assigning tasks, and holding people accountable and ensuring it’s done. That degree of person needs a paycheck. Then we have sales and marketing. If you’re out in the community or in the world bringing in jobs.

That requires a paycheck. And then production If you’re doing the job, making all of the sales and marketing, making that stuff happen, that really needs a paycheck. And the fifth level is administration. When they will concentrate on the sales and marketing, well that’s where they are able to earn income. It might be that as an owner you spend yourself $bucks a month. It almost doesn’t make sense, but the structure is there. And then as the business grows we’re not changing the structure, we’re not introducing a new expense to it. We’re just rendering it bigger. Because now it can work it. And that’s what plenty of business owners who go 5 to 10 years without a paycheck. At the conclusion of the season they might get whatever is left over. And deposit into their account to allow them to live from, or they live off their husband or wife who includes a “real job”. But this way the structure will there be and it’s an actual business entity that may grow.

Tags: #Business #Small Business

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