If you’re like many other small business entrepreneurs, you pay yourself as the money comes in. Good month, pay yourself more. Bad month, pay yourself less. In general, this is a mistake. It’s easy to tell yourself you’re justified in pulling extra funds out of the business: There are extra profit bucks in the business bank account — you’ve worked hard and you deserve it — your family should have something extra — whatever. But depleting your account can be dangerous. If there’s a bad month, or maybe a costly problem, you need enough cash to fix the problem and move ahead. You have to put away enough for a rainy day, and you can’t do that if you spend whatever comes in. The solution: Decide on a salary for yourself that’s right for you and for your business, and then stick to that salary. When it’s clear your business is doing better on a consistent basis, then you can give yourself a raise.
Choose a category
- Analyze your customer base
- Superior to your competitors? Then charge more
- Never stop marketing
- Encourage complaints
- Success: destination or journey?
- How much should you pay yourself?
- Trade show protocol: Don’t sit down
- Dangerous myth: Cut price and increase sales volume
- Keep an eye on your cash flow
- Buy your computer system from a single supplier
GOING INTO BUSINESS FOR YOURSELF?
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