Tackling The Taboo Of How To Pay YourselfSep 07, 2021
The dream of owning your own business is often accompanied by thoughts of turning all that hard work into a big payoff. But many small business owners ask how to pay yourself? In reality, that paycheck may not be as big as you expect. In fact, many small business owners don’t take one the first few years their company exists. There are many misconceptions when it comes to paying yourself as a business owner, but The CoLab hosts Megan Marsh and Andres Munar have tips and resources to set you on the path to success and financial security.
It’s a rarely discussed topic but one that every small business owner eventually faces: How in the world do you pay yourself? Is there a secret formula? Does it depend on the business you’re in? There are right and wrong ways to pay yourself as a business owner. It’s tempting to think that any money that comes into your business bank account is yours for the spending, but figuring out your income is much more complicated than that. It’s important to do the research, lay the groundwork, and establish the right systems to set yourself up to be successful.
Ready to dive in? Here’s what we’re covering in this episode of The CoLab:
- [00:36] The topic of paying yourself as a business owner can seem taboo to discuss but prepare to join The CoLab hosts in a deep and honest look at the subject.
- [05:46] You might think that starting a business means you’ll immediately be pulling in gobs of cash, but the reality is much more stark.
- [11:09] When it comes to paying yourself, there are four main areas to consider, the first of which is the type of business you have built.
- [17:27] How you literally pay yourself is another area to consider. Will you pursue the traditional W-2 route or perhaps pay yourself commission based on sales?
- [21:36] The question of how much to pay yourself is one that often befuddles business owners. It’s tempting to look at your business bank account and think all that money is your money, but it’s important to take a step back from that kind of thinking.
- [27:55] Business finances can be complicated, and it’s easy to make mistakes along the way that can cost you big time in the long run.