Paying Yourself as a Business Owner.
When I started business I had no idea about what I had to do to pay myself or the right way to pay myself and all that, I was a young school girl who was doing business to survive and I basically just loaned money from my friends and sell, after selling I will quickly pay back my friends and keep the remaining money to myself, this was going on for a long time and I was able to get things I needed but the thing is that I had to continue to go to my friends to loan me some money anytime I needed to re-stock.
I was doing fine but my business was not, I did not understand the idea of growing my business at that point instead I was doing the business to get myself the things I need. The difference between me (at that time) and someone who is enlightened about business, is that the person will grow his business and after some time may not need to go to his friends for loan before re-stocking.
The intention for doing business.
The intention behind doing a business is one of the major factors to consider if the business will experience any type of growth whatsoever, a business person who is trying to build a brand will definitely re-invest into the business but a person doing business for the sake of survival or to get busy will always try to take out of the business all the time.
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Have a separate bank account.
After school, I still decided to do business after the first one got ruined, but the difference with this one is that I am not running it to survive any longer rather I am trying to build a brand and so I know that spending the money made from the business is wrong. Every business person must have a separate business account, which must be different from personal account, this way funds will not get mixed up and you will not be tempted to spend from your business money unnecessarily.
You should reward yourself.
The reason why I probably had to take from my business money in my first business was because I did not place myself on a payroll, you should pay yourself a reasonable amount at the end of the month depending on how well the business is doing, even when you want to spend, you will need to wait until the end of the month before you pay yourself.
Fix a percentage for the payment.
I have learnt that fixing percentages for the profit made from your business is highly crucial, set a percentage for the amount that will be set for contingency plan, a percentage that will be set for re-stocking and the other percentage that needs to be set for salary payment and that includes yours too.
Thanks a lot for reading, I am @oluwatobiloba.
Hello friend, I think that a business especially at the beginning needs to balance and generate only profits, not losses, particularly I have the story of my boss who began to receive an income after 1 year of work, I do not know how well or bad this but it worked for her. I think that at the beginning every business goes through bad times or rather it is a little difficult to grow so everything should be reinvested.
Yes friend at the beginning, it is wise that every money earned from business is re-invested into the business, it is the sacrifice that needs to be made by the business owner.
Precise, concise and well written. These recommendations are actually excellent. I can say that because I am running my own business as well: the key points are keeping separate bank accounts, put yourself on a payroll, reinvest income in the company to grow. It's a very solid recipe.
Thank you so much for coming around friend, I pray we all achieve success in our business.