Thursday, December 14, 2006

When do I get paid for this?

"But wait - I'm doing all this work and work and work and .... where's all the money going?" If you have found yourself wondering that, wondering just where your salary is at, you're not alone. Every business has expenses and as a small business owner it is a sad but true fact that one of the last expenses to be paid is the employee - you.



With all of the things that you have to pay, from Internet to supplies to shipping, it's hard to find the funds to pay yourself. Some tips for estimating when you can pay yourself:

  • Expect that you will have to go six to twelve months before you can start paying yourself for working.
  • Understand that if the business is not making money, you will not be being paid: work in + work out = paycheck time
  • Pay yourself only what you can afford to take away from the business. If you can't afford to buy ink for your printer, or your Internet has been disconnected for non-payment of the bill, but you have a lovely new jacket - you're paying yourself too much. Put some back into the business and take a cut in your pay.

Working at home is not a get rich quick scheme. Some people do get rich quick, but as a general rule you need to keep in mind that most small businesses fold up before the first year is over, and it takes at least a year to start making money at a small business.

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