“How much of a salary should I be taking from the business?” or
“When should I start taking a salary from the business?”
These are very important questions.
Paying yourself for the work you do is at the core of your work values. Many of you do not pay yourself enough or are maybe thinking,” I’ve never taken a salary”; sometimes I get my expenses covered. I feel it’s not right. Your work as a retailer should not be looked at as a hobby or just something to do or my spouse makes enough. If I’ve hit a nerve – please understand that I get it. You have to pay yourself. When you honor this idea your attitude and how you make this happens shifts.
About the question, when should I start paying myself? You should plan to start paying yourself in the first year. This strategy should be reflected in your business plan if you are setting out to be a new retailer. I hear you laughing out load about what I’ve just written if you run a retail business right now. I’m serious; if you didn’t do that, what were you thinking? Pay every expense, every person that works for you and NOT YOU!
Here is my guideline for your salary. Plan to pay your self up to 20% of total sales in any given year. So for example, if your sales are $250,000 – you pay yourself $50,000. If you are not doing this – it needs to start happening now. Increase sales to cover what you should be making. That’s your goal for this year. Increase your sales by $160 a day. That’s all you’d need to do to make these numbers. It’s possible; you can do it.
Need help please contact me. I have the answers and solutions to rightsizing your business with a focus on increasing sales, keeping you on budget and finally paying yourself better then you have every before.