How Much Should You Be Paying Yourself

How Much Should You Be Paying Yourself & Other Directors

Today I want to talk about how much should you pay yourself? You see, most business owners don’t actually know much they pay themselves because they’re putting it back into the business. That is until they have a business partner who works less in the business or has a different skill level.

Sometimes this can change over time. All of a sudden they go, “Well, hang on. I’m doing more work and I’m getting paid the same amount,” or something of that nature. Here’s the best way to think about it in my view, is that … Pay yourself a wage that would reflect the cost there would be to employ someone else to do the same job. As long as you satisfy that, it’s fair on everyone.

The Right Amount To Pay Yourself Related To The Type Of Work

Once I had a business that had one of the owners doing the bookkeeping because he loved doing it. Of course, we paid him for the time he did the bookkeeping and we paid him a bookkeeping wage for doing this type of work.

On the other side of the coin, there was a high end developer, and so he got remunerated as a high end developer. That kept it really fair and open.

Paying yourself a wage makes your business look much more like a real business. I don’t so much mind how you do it, whether it’s things like taking drawings, an equal amount regularly, but even better still is to pay yourself a salary, a salary that has superannuation associated with it. Therefore, you’re building up your super at the same time.

I know there’s got PAYG and things like that involved, but if you can afford to pay yourself a true-blue salary along with the rest of your workforce its the best approach.

Now, the big question is, if you did get some good ideas, what are you going to do now? Because that’s the tough bit, actually implementing them into your business. That’s what I do as a coach. I work with you to come up with great ideas, build action plans and implement those ideas into your business. The results are outstanding. Businesses I work with often grow between 40 and 50% a year.

How would that be for your business? Now, if you want to find out more, it’s pretty easy. You just need to find my number below and give me a quick call. Ultimately, we’ll meet up. We’ll have a great discussion about your business.

Now, don’t take this lightly. I go well out of my way to come up with some great ideas and give you six to twelve months of strategies to help you out in your business, whether you want me to help you do it or not. Anyway, I sincerely hope you give me a call. I really look forward to talking to you.

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Hugh Bowman is a specialist in business coaching for trade businesses and is a former engineer and technical expert. He has lived and worked in many parts of regional Victoria coaching tradie business owners.

Ph: 0409 402 474