NEWS How much small business owners should pay themselves

[Sincerem]

I think that there is a big difference between profits and income. When you minus the expenditure from the total profits, then you tend to get the income. This is what the owner actually owns.

But this wouldn't be considered in growing business because the profit will still be reinvested into the business. The problem is how much a business owner should be taken after a profit has been made for daily selfkeeping.

 

[Danny4cash]

It's for them to know. As a business owner, you'll pay yourself sending on the profit you're making monthly. And it's selfishness that will make business owner pay him or herself before the workers.

 

[Sotherefore]

That's if every other thing is being kept constant. If you have a sick son that's fighting for his life, would you be thinking about making reinvestments or taking him to the hospital no matter the cost? I think I know the answer to that.

I still do not really understand the point you are trying to arrive at, in the case of someone getting sick , that is an emergency definitely you have to withdraw from the business what about normal self keeping like food, clothes, and party ?

 

[Monster Masterpiece]

I still do not really understand the point you are trying to arrive at, in the case of someone getting sick , that is an emergency definitely you have to withdraw from the business what about normal self keeping like food, clothes, and party ?

He is not meaning he is seek, he means one member family got sick, definitivelly it needs some sort of special care or visit it during working hours if in hospital. This is some kind of emergency that it is more prior than work, especially son or daughter or father or mother. Family is more important.

 

[Skysaint]

I still do not really understand the point you are trying to arrive at, in the case of someone getting sick , that is an emergency definitely you have to withdraw from the business what about normal self keeping like food, clothes, and party ?

Read the thread topic and you would understand. You said that entrepreneurs should be entitled to salary if they want to grow their business and I am trying to tell you that it's not possible for that to happen.

 

[Genie01]

Small business owners should pay themselves large enough to motivate themselves and small enough not to make the business crash. It takes some level of plan to achieve that.

 

[Skysaint]

Small business owners should pay themselves large enough to motivate themselves and small enough not to make the business crash. It takes some level of plan to achieve that.

You're right about this mate. They should be fair enough on themselves to withdraw the amount that would take care of their needs and also disciplined enough to think about the future of their business.

 

[Syldan]

Personally I think, there is no specific amount of money that will be enough to pay entrepreneur after the success of a business because i believe it takes alot of effort and sacrifice to reached the success point.

 

[Bookwormlux]

You have to make sure that you get to reward your self in a good way. This goes a long way to make you feel good and also become readily prepared for what is ahead.

 

[Genie01]

Rewarding yourself as a business man is not a bad thing, infact it is a form of boosting your motivation for the challenges that lies ahead, it is good to pay yourself first.

 

[Immilash]

Trading is a good skills that can earn you a considerable amount of money but only if you know what you are doing,a lot of people don't know what they are doing that's why they lose money.

 

[Agbalagbaa]

Rewarding yourself as a business man is not a bad thing, infact it is a form of boosting your motivation for the challenges that lies ahead, it is good to pay yourself first.

Definitely, but at the same time it is very important to consider the growth of the business in mind.
If you are constantly rewarding yourself in a small business, you could eat up your capital.

 

[HayKay]

This should be when the business is stable. You may have to sacrifice some part of your earning in the beginning just to ensure that it grows and can sustain itself later. This may mean reinvesting the profit made occasionally.

Well said and that's why i keep telling people that starting a business or owning one is not usually easy as most people think. Sometimes most people are better off working for others

 

[Shigobad2020]

I don't think there should be a definite or fixed amount of money you should be paying yourself as the business owner , what I normally do is that whenever I realised my profit is not much , I don't pay myself that month , but when the business is doing well, I divided the profit into three , 30% goes to the business upgrade , the second 30% goes to my reserve fund and the remaining 40% is my salary .

 

[Genie01]

Definitely, but at the same time it is very important to consider the growth of the business in mind.
If you are constantly rewarding yourself in a small business, you could eat up your capital.

I truly agree with you.
It is a double edge sword phenomena , one edge could sharpen you and if you are not careful enough the other edge could cut you and that would be very painful.

 

[Immilash]

I think this depends on how much you are earning, if you are earning a considerable amount of money I'll advise you to pay yourself a good amount of money.

 

[Good-Person]

Paying yourself would help boost your motivation and it is as well important that you do not over pay yourself.
This would be detrimental to the success of the small business.

Well, I always believe that you must reward yourself when it comes to achieving anything in life. This is how things work in the best manner. Rewarding yourself may motivate you.

 

[Agbalagbaa]

I think this depends on how much you are earning, if you are earning a considerable amount of money I'll advise you to pay yourself a good amount of money.

Yeah, but then this is startup and there are alot of logistics that would require a small business to grow if you pay yourself alot , it might affect the tendency of growth.

 

[Sincerem]

If you have money , the profit of the organisation should be used to upgrade the business and to bring it to a more standard and organised business. In situations that there is no other way of generating income then money should only be taken out of the business when it is necessary.

 

[Genie01]

Well, I always believe that you must reward yourself when it comes to achieving anything in life. This is how things work in the best manner. Rewarding yourself may motivate you.

You are absolutely on point, no one would celebrate you until you celebrate your self. If you don't celebrate yourself , it would be difficult for people to celebrate you.