Compensation Guidelines for Business Owners

Financial Snickens

How much should a business owner draw as their take-home pay? Too much, and you’re draining the business, but too little and your personal financial struggles will take the business down with them.

So, how can entrepreneurs calculate their own fair wages? And how do they account for taxes and health insurance in their paycheck?

Learn guidelines for how business owners can accurately determine their take-home pay, 5 things an entrepreneur’s compensation should cover, and when it’s time for them to reexamine the finances of their business.

In this episode, you’ll also hear:

• How business owners get paid
• 5 key items to cover with your pay
• When to readjust your business model

Must-listen moments:

[00:00:41] There are two major ways that you get paid through a business as the owner, you get an owner's draw, or you receive a paycheck.

[00:05:07] You should be making money. You take all the risks of your company, you work all the crazy hours, you do all the work, and you should be compensated accordingly.

[00:06:17] If you’re still doing that after years of being in business, or if you constantly have cash flow issues related to you taking a salary, then something is wrong, and you need to take a closer look at your revenues and expenses.

Mentioned in this Episode:

Guideline - https://www.guideline.com/

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