The Power of Paying Yourself: Why Every Small Business Owner Should Start Now
Starting a small business is a big step; for many small business owners, it can be a rollercoaster ride of ups and downs. One of the biggest challenges business owners face is paying themselves a wage, particularly in the first few years.
It's too common to see business owners working themselves into the ground, ensuring everyone else is paid before they think about themselves. This can lead to financial stress and a lack of motivation to keep going month after month. But many need to realize that paying yourself a wage can be a game-changer, even if it's just enough to cover your personal expenses.
Why is it important to pay yourself?
Paying yourself a wage sends a powerful message to yourself and your business that you treat it as a legitimate operation. It shows that you value your work and are committed to building a successful business. Not only does it help relieve financial stress, but it also helps to build a positive money mindset.
But when should you start paying yourself?
The answer is simple: NOW. Start with what your business can afford and gradually increase the amount as your business grows. It's crucial to set up a regular wage payment that is immovable, just like all the other payments that come out automatically from your business account. Consider this wage payment a non-negotiable expense, just like all the other expenses your business incurs.
If you already pay yourself regularly, it's essential to review your wage regularly to ensure that it's still adequate and in line with the growth of your business. You are worthy of being paid for your work, and your business will benefit from a happy and motivated owner.
But what if the business does not yet produce enough money to pay a wage to the owner?
If your business still needs to produce enough money to pay yourself a wage, don't worry; you're not alone. Many small business owners face this challenge, especially in the early stages of their business. In this case, it's essential to focus on creating a solid financial foundation for your business. This means controlling your expenses, finding ways to increase your income, and seeking out financial resources if necessary. You can also consider taking on a part-time job to supplement your income until your business can support you. Remember, the goal is to make your business sustainable, and paying yourself a wage, no matter how small, is an important step in achieving that goal. Finally, remember that success takes time and persistence; you will get there with hard work and determination.
Start with a nominal payment (a tiny amount). Don't tell yourself it's not worth it because even with a minimum payment on a routine basis, you are starting a critical money habit.
In conclusion, paying yourself a wage from your small business is essential in building a successful and sustainable business. So start now with what you can afford, and make it a regular, immovable payment. Remember, you are worth it!