Paying Yourself: A Guide for Small Business Owners

Neglecting personal compensation as business owner can potentially harm your business in the long run. Why? Business owners who are not well compensated thinking it isn’t a priority, can burn out faster than they think. 

Watch this video to understand the logic of paying yourself as owner of the business consistently.

It isn’t helpful to think you should not get paid now. To ensure business success, make a plan to pay yourself. Here are some ways to make that possible:

1. Create a Pay Structure

Decide how and when to get paid, whether through a fixed salary or periodic distributions. A clear pay structure ensures consistent personal income.

2. Set Aside a Percentage

Allocate a portion of profits, typically around 10%, for personal compensation. Then, adjust this percentage based on the current business financial health.

3. Prioritize Financial Stability

Ensure personal compensation to avoid financial stress and burnout. This stability supports both your personal well-being and business sustainability.

As the owner of the business, paying yourself isn’t just about taking home a steady paycheck.  Yes, the financial challenges you face are unique but having an irregular income can be quite stressful. 

Avoid the burn-out and get paid consistently especially when you are hands-on. If you can support yourself, you can sustain the business more. Paying yourself is key to long-term success. 

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