A potential client recently asked me whether business owners should draw a salary. My response was, "it depends." However, I firmly believe that business owners should compensate themselves for their contributions and growth, rather than working for free.
You’re a Supplier Too
There are numerous reasons why paying yourself is crucial. Many, including myself, follow the Profit First model, which emphasizes the importance of paying yourself a salary every month. If you can't pay yourself, why are you in business? Imagine working tirelessly at a "job" without receiving compensation. It would undoubtedly impact your motivation to continue.
Think of yourself as a supplier—a supplier who deserves to be compensated monthly.
Know Your Worth
The value of your work is directly linked to what you charge. Many struggle with this concept, often undercharging or even offering services for free. While a new business might require short-term sacrifices to build trust and a client base, it's important not to fall into this pattern for too long.
If you're working long hours without making financial progress, it may be time to reassess your rates. We can help with this evaluation. At KC & Company, we offer personalized consultations to help you set competitive rates that reflect your true worth.
Abundance Over Resentment
Most entrepreneurs start their businesses out of a passion for helping others. You pour your energy into serving clients, but without recognition or reward, you risk burnout and resentment. You can't serve others if your basic needs aren't met.
To maintain balance, be open to receiving as much as you give. Set your rates at fair market value (or higher), acknowledge your worth, and let abundance replace resentment.
Ready to Take the Next Step?
If you're unsure about how to start paying yourself or need guidance on setting the right rates, we're here to help. Contact us today to learn more about our services and how we can support your journey to financial sustainability and business success.
