Do you pay yourself as a business owner?

[Henrywrites]

The main aim of starting a lot of businesses is the ability to ensure that you make profit. Any business that is not making profit is likely to fold up. So, as a business owner, after paying staff that work for you, do you also take your pay from the business or you reinvest everything?

 

[Heatman]

Well, every money that's generated from my business of poultry and fish farming belongs to me. After paying the 6 workers I have in my employ and settling all the expenses I need to pay for, the rest is my profit. I use part of it to take care of my other personal responsibilities, save some and invest some back into the business.

 

[Good-Person]

The main aim of starting a lot of businesses is the ability to ensure that you make profit. Any business that is not making profit is likely to fold up. So, as a business owner, after paying staff that work for you, do you also take your pay from the business or you reinvest everything?

If i were to start a business, then I would certainly "pay" myself in the sense that I would withdraw profits from the business. I would not withdraw all the amount, as i would be saving some amount so that I could reinvest in the business.

 

[Henrywrites]

If i were to start a business, then I would certainly "pay" myself in the sense that I would withdraw profits from the business. I would not withdraw all the amount, as i would be saving some amount so that I could reinvest in the business.

Going ahead to withdraw a portion of the profits is one good plan that you should go with. However, don't you think that fixing your pay is another strategy that you should put into consideration because you can't say how things will always turn out and you make bigger profits.

 

[Heatman]

Going ahead to withdraw a portion of the profits is one good plan that you should go with. However, don't you think that fixing your pay is another strategy that you should put into consideration because you can't say how things will always turn out and you make bigger profits.

The reason why I don't see any need of having any kind of fixed payment for yourself as the business owner is because every money that have been generated in the business is already in your control. You cannot just take the specific amount of money that you are supposed to invest back in the business and save it in the bank account as your fixed salary.

 

[Shortie]

Being that I am the only person who works in my business currently, any earnings I make go to me and they help myself and my family and they go towards living as well as also being able to save for things such as birthdays, Christmas and such.

If I had employees I would definitely split the revenue I made 50/50 between myself and my employees.

 

[Heatman]

Being that I am the only person who works in my business currently, any earnings I make go to me and they help myself and my family and they go towards living as well as also being able to save for things such as birthdays, Christmas and such.

If I had employees I would definitely split the revenue I made 50/50 between myself and my employees.

You're definitely being more than generous for being willing to share your business earned revenue 50/50 with your employees. Most companies will never do that because if they do, most of their workers will be financially stable very quickly and they will leave the job to start their own.

 

[Nomad]

When I start a business, I am basically working for me. If I start paying myself, I will incur huge expenses and my business would not survive. Instead of paying myself, I hire staff. However, as the business start generating profits, I pay myself a moderate salary.

 

[Ja Sa Bong]

What I call paying myself in my business is when I can take some money to take myself out once or twice and have a good time. It's money afterall, if I don't spend it on myself, no one would. After this nice enjoyment, everything else goes back into the business.

 

[Nomad]

If your business is in a struggling phase, if might not be able to pay yourself. However, if your business is already generating a lot of money, paying for yourself is a good strategy as this will also stop you form using business funds for personal needs.

 

[Heatman]

The most important thing is for you to find a way for getting the money which you're not using for anything back into your business. Even if you have paid yourself and used some of the money to take care of your needs, the one's that's left should go back into the business.

 

[Good-Person]

What I call paying myself in my business is when I can take some money to take myself out once or twice and have a good time. It's money afterall, if I don't spend it on myself, no one would. After this nice enjoyment, everything else goes back into the business.

The main problem is the fact that i do not earn that much. This is why it might be really hard for you to "pay yourself' when you do not earn that much. You may think about saving money and "paying yourself" because you may be thinking about saving money and saving the rest of the money because you may be thinking about reinvesting money. So, this may be the main reason why such complications may be involved when it comes to "paying yourself".

 

[Ja Sa Bong]

The main problem is the fact that i do not earn that much. This is why it might be really hard for you to "pay yourself' when you do not earn that much. You may think about saving money and "paying yourself" because you may be thinking about saving money and saving the rest of the money because you may be thinking about reinvesting money. So, this may be the main reason why such complications may be involved when it comes to "paying yourself".

If your business isn't making enough money and profits, you're not meant to be spending too much from the business. If your business is new, you're supposed to allow it operate for at least 2 years before you start putting expenses on it midly. If you put too much expenses on a new business, it may suppress it.

 

[Good-Person]

If your business isn't making enough money and profits, you're not meant to be spending too much from the business. If your business is new, you're supposed to allow it operate for at least 2 years before you start putting expenses on it midly. If you put too much expenses on a new business, it may suppress it.

This depends a lot on the daily expenses of your business. Some business owners cannot simply afford to spend more and more money. This is why they try their best to save money. In that case, business owner may be much more interested in reinvesting money into the business as well.

 

[Ja Sa Bong]

This depends a lot on the daily expenses of your business. Some business owners cannot simply afford to spend more and more money. This is why they try their best to save money. In that case, business owner may be much more interested in reinvesting money into the business as well.

If your business is standard in its operation, it can withstand taking money out from it to some extent because the business is seeing increased sales and turn over. A business ought to be managed in profitable way to secure it from failing.

 

[Heatman]

If your business is in a struggling phase, if might not be able to pay yourself. However, if your business is already generating a lot of money, paying for yourself is a good strategy as this will also stop you form using business funds for personal needs.

Business owners who are very smart will always do their very best not to incure any kind of expenses on their businesses whenever the business is still in a struggling phase.

This is because there is no way the business can be able to generate funds that can be able to take care of expenses being pushed towards it.

It is going to be better for the business owner to find another means to take care of his expenses and not putting any aspect of the expenses on the business that is struggling.

 

[Ja Sa Bong]

Going ahead to withdraw a portion of the profits is one good plan that you should go with. However, don't you think that fixing your pay is another strategy that you should put into consideration because you can't say how things will always turn out and you make bigger profits.

There is constant inflow and outflow of money in business. The inflow of money comes from the sales you're making and the outflow is your expenses which paying yourself and workers are part of. If you don't have any workers, you're paying only yourself.

 

[Heatman]

When I start a business, I am basically working for me. If I start paying myself, I will incur huge expenses and my business would not survive. Instead of paying myself, I hire staff. However, as the business start generating profits, I pay myself a moderate salary.

This is something I do as well. In fact, whether you decide to take any specific amount of money to pay yourself or leave everything, it's still the same thing because when everything about the business is carried out by you, the finance is managed by you as well, there's what you wanted to use money for that you can't do.

 

[Nomad]

There is also a benefit of not paying a salary for yourself. If you pay yourself a salary, you will have to pay taxes on your earned income. When you don't pay a salary, you don't have income, thus you don't have to pay taxes.

 

[Heatman]

It's the right thing to do everything possible in a legit way to eliminate paying taxes. Government have always been very greedy with how they go about taxing businesses without looking at how much they make in profit. This is why I don't consider playing myself a salary in my business. I know it's only my business taxes that I have to pay.