How Many Years Do You Wait Before Paying Yourself A Salary?
How many years should you be in business before you start to draw a wage?
Such a good question...
There are three things you need to consider:
How much of your revenue to reinvest into growth vs paying a wage, will depend on your personal circumstances. If you have other sources of income you may be able to choose. For others there is no choice.
Make a plan - you're salary is NOT a reward for doing a good job. It's a fixed business cost you need to plan for. So if you're just paying yourself whatever dribbles out the back, with no real idea at what point you'll be able to take a fixed income. Stop it! Paying yourself a salary needs to be factored INTO your pricing and sales strategy.
It is possible to do BOTH! It's doesn't have to be one or the other - reinvest and grow my business, but pay myself nothing; or pay myself a wage but never grow beyond the here and now. You can do both. With the right pricing strategy, that's based on knowing your numbers rather than guesswork.
Now none of that stuff happens over night. We're all grown-ups here.
We know there's no magic wand.
It takes hard work, determination and HAVING A PLAN.
so if you don't have a plan....
If you don't know at what point you'll be able to pay yourself a wage...
If you don't know what your business needs to look like, how many clients you need to be servicing and at what price point in order to pay yourself a salary...
Make a plan!
And if you get stuck - Message me.
It's what I do!
It's not that hard, when you know how!
