When do I start paying myself a salary in my business?

When Should I Start Paying Myself a Salary?


A potential client ask me recently whether business owners should collect a salary. The answer I gave was "it depends". With that being said I do believe we should be compensating ourselves for the growth in our business instead of working for free. 

You may already be familiar with Denise Duffield-Thomas of luckybitch.com.  I've been following her for years and growing in my journey to reevaluate my patterns and beliefs around money and value in my business.  It has inspired me to share a similar message with you.


You’re A Supplier Too

There are so many reasons why it is really important to pay yourself.  Lots of people, myself included, follow the Profit First model. Using this model you, as the business owner, have to pay yourself as  a salary each and every month.

After all, if you can't pay yourself, then really why are you in business? Imagine working really, really hard at a "job" and not getting paid. Imagine how that would affect your motivation to continue on working hard.

Think of yourself as a supplier.

 A supplier who also needs to be compensated every single month!


Know Your Worth

The value of your worth is in direct proportion to what you charge for your work. Many of us struggle with this concept. Some end up either under charging and find there’s not enough time to generate the money needed to sustain or worse, they give services away for free.

Don’t get me wrong, a business in its infancy may require this short term sacrifice to gain trust and build a client base. Don’t get caught up in doing it for too long.  

If you continue to find yourself working long, long hours and not making enough financial headway to pay all suppliers (yourself included), it may be time to evaluate your rates. We can help with this.

 

Abundance Over Resentment

You, like most entrepreneurs, are in business for themselves out of a passion to help people in whatever space you are in.  You truly enjoy your work and give it your all. Imagine putting all of your energy into serving your clients but not receiving any recognition or reward.You cannot serve anyone else if your mortgage isn't paid or if you don't have grocery money.

In time, energy and abundance will be exchanged for burnout and resentment. You've got to be open to receiving as much as you are giving. Set your rates at fair market value (or even higher), accept that you are worthy and abundance will outshine resentment.

Here’s the link to Denise’s article.  You’ll find it is available both as a video, typed transcription and audio.  I encourage you to continue learning about sending out what we want to receive. If we do, abundance follows.


Like most of my blog posts, I have a corresponding video. If you would like to check that out click on the image below. 


salary for an online business owner

 

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