Tip #1: Pay Yourself A Paycheck.
One of my biggest tips to business owners is to pay yourself the same amount each paycheck (like you are on salary) and have the check automatically deposit into your personal account on the same date 2 times a month. Whether that paycheck is $500, $5000 or $50,000 – it is important that you pay yourself on salary, with your taxes taken out (and 401k).
Leave the rest of your profits in the business account to grow the business. You don’t want to get in the habit of taking all the profit from the business, because you will train yourself to do that and you won’t want to stop. I started with this habit as my #1 tip because it’s the bad habit I see the most. Smart business owners have a plan for their money and know that they need to give themselves a paycheck and invest the rest into the business for projects, marketing, growth, new employees, branding, coaching, and expansion. You don’t ‘get’ a paycheck, you ‘create’ a paycheck and this simple habit will keep you accountable to your sales and marketing – if you need some inspiration in that department read this blog article.
So whether you are paying yourself $500 a month or $50k a month it needs to be done properly if you want to grow the right way. Especially if you have plans to sell your business one day you want all the financials done right. How do we do this? It’s simple hire a PEO service (google it) or an accountant (if you don’t know one ask me). Simply discuss how much you want to pay yourself and put yourself on salary – they will withdraw $X from your business account on a certain day, pay the right taxes, invest in your 401k (or start one for you) and then cut you a salary check for your personal account. They can also do it for any employees you have too! It keeps things clean and clear, AND you get to practice a GREAT habit that GREAT business owners do. This is a great way to UP level your business – it will make a huge difference in your success, revenue and happiness. I promise.
Day 1 of 10! Follow this countdown to 2016 with postings from 12/22-12/31 on my blog at www.DenaPatton.com
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