As a business owner, do you give yourself a fixed salary or do you take profits? I have never given myself a salary, instead of a salary, I take the profits. After deducting the expenses, and setting aside funds to run the business, I take the profits and use the profits to pay bills or save for future investment. I find this model sustainable.
Giving Yourself a Salary Vs. Taking the Profits
- Thread starter nomad
- Start date
Yes, I'm just like you, I don't pay myself but take advantage. I think this is better for the sustainability of the company, because business profits are not always stable every month, we take according to existing profits, so it doesn't reduce the company's finances.
I have a really fixed budget when it comes to spending money. The fact of the matter remains that limiting your expenses is the key to manage your financial issues in the current era when inflation is increasing so much.
I don't believe that a business person should be taking all the profits that accrue to a business. He should pay himself a salary depending on the profit level of the business. The business has to grow and that can only be achieved through ploughed back profits.
I am not a business owner. But a lot of business owners I know takes a monthly salary. This gives them a stable income to manage daily expenses. If the company is making profits, the owners also take a portion of the profit and reinvest some back into the company.
I should not even be in charge of finances in a business I own. I would surely have an accountant who would be mandated to pay me a fixed salary. I don't believe I can just put my hand so deeply into company finances.
I believe every now business person has a plan for the profits that come into his business. But it is not right to take all the profits as the bison has to grow and develop. There should be a reinvestment in the business..
I agree with you. First thing, the salary will be given to you according to the financial part that was established when conducting or completing the business feasibility study, unless they did this in the first place.
I know I am not good with money. That's why I remove myself frim financial dealings of the business. I focus on creative and managerial aspects. I let the staff pay me salary based on a defined arrangements. Financial dealings are just for my knowledge.
I would prefer to take profits. However, I would never withdraw a lots of profits at the same time. This is because I may need to keep a balance between how much I spend and how much I earn.
I would prefer to receive salaries from my business other than taking profits.
