We all wonder whether we should pay ourselves as business owners, especially for startups. And yes! I believe you should, but the details are much more than this.

Let me start by saying, an entrepreneur’s life is about taking the risk after identifying a need. They bring in resources together to answer a societal need.

Profits then becomes a by-product of solving the society problem! So wait a minute! Sounds like making profits is not a good reason for you getting into business. Yet a business must make profit to survive. Sounds like a contradiction? But no, it means -: Have the right motive for getting into business. Then do what is right consistently

Profits will follow and so should cash flows. From there you pay everybody. And who is everybody? Your partner-: creditors, landlords, Your staff, Your banks, And even your taxes. Am sure you are wondering, when do I pay myself? As you have set and agreed to pay the rest so must you too agree and set to pay yourself. You must be aligned to what the business can afford to pay you. As a startup you cannot afford too much luxuries.  But as your business improve so will your benefits improve. And remember your salary or benefits are also taxable.

I keep stressing on this because this can cause you trouble. So should you pay yourself in business? Yes, you should. How much and when is the question. In my book give me a mountain I have said, that by the time an entrepreneur is paying themselves, ever remember they have paid everyone else including the tax man. Celebrate them. Reward yourself, but remember out of profits and cash flows. Over to you my great people.