NEWS How much small business owners should pay themselves

[Heatman]

I believe that a genuine entrepreneur doesn't truly treat his business money as personal income but rather as an income that should be put to good use. produce enough money from the business to pay yourself at least a decent amount.

As a small business owner I believe that you can actually pay yourself whatever amount of money you want to pay yourself depending on the profit your business is making because everything is managed by only you without any interference.

 

[Shigobad2020]

Since the business belongs to you , as the owner you have the right to take any amount of money from the business since its doing well and you are making profit , but one thing you must do is to make sure the money is not affecting the business.

 

[Chibson]

Since the business belongs to you , as the owner you have the right to take any amount of money from the business since its doing well and you are making profit , but one thing you must do is to make sure the money is not affecting the business.

Even if a business venture belongs to you you should be paying yourself instead. This is because it will help you to save more money for the business instead of spending it recklessly.

 

[Immilash]

Since the business belongs to you , as the owner you have the right to take any amount of money from the business since its doing well and you are making profit , but one thing you must do is to make sure the money is not affecting the business.

That's true, i believe if you are good at managing the business you are going to earn a considerable amount of money from it, it's all about how good you can manage it.

 

[Nomad]

I think this should depend on how much money the business is making and whether the owner has other income sources or not. Most business owners do not give themselves a salary when they are just starting out.

 

[Immilash]

I think this should depend on how much money the business is making and whether the owner has other income sources or not. Most business owners do not give themselves a salary when they are just starting out.

You are right by what you've said, that's why you'll always find out that most of businesses are failing because of this same reason, it's not meant to be so.

 

[Nomad]

Sometimes when you do not have earnings and when you don't give yourself salary, you end up using your business revenue for your personal expenses, which might later cost you dearly

 

[Mayorla]

As a small business owner, The amount you pay yourself should be dependent on the amount of profit you make. You can pay yourself 30 to 40 per cent of the profit made and re-invest the rest back to your business.

 

[Immilash]

As a small business owner, The amount you pay yourself should be dependent on the amount of profit you make. You can pay yourself 30 to 40 per cent of the profit made and re-invest the rest back to your business.

You are right, an also if you are good at paying yourself you are always going to have the motivation to keep going, this very important in my own opinion,it will help a lot.

 

[Mayorla]

You are right, an also if you are good at paying yourself you are always going to have the motivation to keep going, this very important in my own opinion,it will help a lot.

Yes, It is very important.
As a business owner, You would not want to be seen using your business money for your personal expenses.
So it is better to keep a part for your personal expenses.

 

[Robert90]

Small business owners should set their own compensation levels depending on their profitability and ability to pay. In the early years of their businesses, many entrepreneurs do not get a wage. If their company generates enough revenue, business owners should pay themselves. They should also think about the tax ramifications.

 

[Danny4cash]

It depend on individual business owner. Some people will pay the half of the profit they generated within a month. While others pay them all the profit they get in a month. To me, the best thing to do as a small business owner is not to pay yourself in the early days of your business.

 

[Syldan]

Actually I believe there is no amount of money that will be quite enough to pay an entrepreneur for the kind of sacrifice he or she has made to start and develop a business to some stage.

Though it shouldn't be some amount that will later affect the financial status of the business.

 

[Chibson]

As a small business owner, The amount you pay yourself should be dependent on the amount of profit you make. You can pay yourself 30 to 40 per cent of the profit made and re-invest the rest back to your business.

Probably, the amount of money you making your business will mostly determine the amount of money you are going to pay yourself. As your business increases you can be increasing the pay.

 

[Mayorla]

Probably, the amount of money you making your business will mostly determine the amount of money you are going to pay yourself. As your business increases you can be increasing the pay.

Yes, that is true.
The amount you pay yourself would definitely not be stable.
Rather, it should be done on a percentage ratio like maybe 10 or 15 percent of your profit for that month.

 

[Syldan]

Well business entrepreneurs are those who make the most sacrifice in business just to see it growing to a better level of income.e generation.

No amount of money can be enough for that but a considerable amount of money should be used in a way that it will not affect the growth of the business.

 

[Chibson]

Yes, that is true.
The amount you pay yourself would definitely not be stable.
Rather, it should be done on a percentage ratio like maybe 10 or 15 percent of your profit for that month.

I think it depends on the kind of business you are into. The amount of profit you generate will also determine because some businesses that generate millions or billions needs a lot of money to continue running. Taking 10% of the profit may fo a lot of harm to the business.

 

[Mayorla]

I think it depends on the kind of business you are into. The amount of profit you generate will also determine because some businesses that generate millions or billions needs a lot of money to continue running. Taking 10% of the profit may fo a lot of harm to the business.

Yes, that is very true.
Some businesses see profits in millions and It would not make sense to take 10 per cent of the profit as this would affect the way the business is conducted.
For this type of business, There would be need to just take what will cover your expenses.

 

[Chibson]

Yes, that is very true.
Some businesses see profits in millions and It would not make sense to take 10 per cent of the profit as this would affect the way the business is conducted.
For this type of business, There would be need to just take what will cover your expenses.

Yeah, I believe as the business grows you will need more money in order to finance it and also to stay competitive in the market. As a business person you really need to be very strategical in order to continue maximizing profit.

 

[Syldan]

Actually if you are paying yourself as a business owner, you shouldn't take a portion more than your income but it should be at least 20% of your total income so that it will not affect the financial status of the business in the future.