Welcome to the fifth and final week in this month’s series “Profit Plan”.
I’m wrapping up this series with one of my favorite topics to teach my clients about that I don’t see a lot of people talking about in the online space. It’s the topic of PAYING YOURSELF.
We hear people throw around numbers and figures but to me it’s all about making a PROFIT and PAYING YOURSELF from that profit so that you can create your dream lifestyle.
This is probably the #1 thing that I teach my clients so I’m excited to dive into it with you today!
Here are a few key things I believe you need to know about paying yourself as an entrepreneur:
PAY YOURSELF FROM THE START
Okay, whether you have already started a business or not, if you haven’t already been paying yourself I want you to start paying yourself right now. I believe that a business should be profitable from the start and that you should pay yourself from the start even if it’s a small amount. At the beginning it might take a while for you to generate the sales you want to make however even if it’s just paying yourself $100 I believe that this is KEY to setting you up for long-term success and growth in your business.
INCLUDE YOUR SALARY IN YOUR FEES
The way I went from being a broke entrepreneur to a profitable one was simply by starting to take into consideration what I wanted to make in my business. I went from having a business where I didn’t pay myself for 2 years to replacing my corporate salary in 3 months. How? I finally factored in how much money I wanted to make in what I was charging. So basically, when you price your offers, include expenses, taxes and your fee.
HAVE A RELATIONSHIP WITH YOUR MONEY
The last key thing I want to mention when it comes to paying yourself is that you need to have a healthy relationship with your money. What I mean by that is that you need to actually have a relationship with your money. When you think about a relationship, what things make up a healthy one? It’s communication, spending time together, having a positive view and thoughts about each other, etc. That is the way you want to treat your money. With respect, joy, communication and celebration. If you don’t already, set up weekly money dates where you look over your finances and find a way to make it fun. Also set-up a date every month where you review your finances for the month and pay yourself your salary. I like to manage my finances in the following way:
-Review total income that month
-Subtract total expenses for the month
-Subtract and save 15-30% for taxes
-Leave 3 months of expenses in bank account (you can build up to this by saving towards it each month)
-Pay myself the profit
What is your relationship like with money? Are you paying yourself? If you aren’t, go through the steps above to make the necessary changes and I promise you’ll see a shift in your mindset and growth.