An employee usually lets the boss decide on how much he gets paid. But if you’re the boss who owns the business, how are you going to pay yourself?
Pay yourself a weekly wage rather than have the business income serve as your personal spending money. Maintaining separate bank accounts for business receipts and personal spending is also advisable.
A tip to earn extra income through interest, is to put your business earnings in a high-interest savings account. Transfer your revenue into this account and only draw a set amount to pay yourself.
What do bosses pay themselves?
Smart Company conducted an anonymous survey with 13 small businesses and startups of various sizes, on how and how much the owners start paying themselves. Here’s the result:
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Business size: running for eight years, over $4 million turnover Before: founders paid nothing Start pay: eighteen months in, $70,000. After three years that increased to ~$110,000 Today: $150,000 |
Business size: running for five years, $3 million turnover Before: founders paid nothing Start pay: two years in, tied to business profitability Today: N/A |
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Business size: running for four years, over $1 million turnover Before: nothing to start, $50 a week after three months in Start pay: one year in, but only $250 a week Today: a ‘normal’ salary |
Business size: running for 10 years, $2 million turnover Before: founders paid only out of profit Start pay: two years in, around ~$40,000. Today: still ~$40,000 |
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Business size: running for six years, $500,000 turnover Before: no salary Start pay: six months in, around ~$20,000. Today: now $40,000 |
Business size: running for four years Before: no salary Start pay: one year in, around ~$50,000. Only taken after closing a funding round Today: $150,000 |
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Business size: running for seven years, $4 million turnover Before: $50,000 salary Today: around $100,000, but unlikely to increase |
Business size:running for six years, ~$17 million turnover Before: started with $150,000 salary plus dividends Today: $230,000 plus dividends, set to increase |
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Business size: running for six years, $20 million turnover Before: no salary Start pay: one year in, around ~$70,000 with super Today: higher salary |
Business size: running for two years Before: nothing Start pay: two years in Today: lowest paid staff |
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Business size: running for six years, $4 million turnover, Before: founders paid hourly wage from start of business Start pay: never, founders still on hourly wage Today: no salaries, each founder paid market hourly wages |
Business size: running for three years, $2.5 million turnover, Before: no salary Start pay: six months in, around ~$70,000. Only taken after closing a funding round Today: $150,000 and $50,000 worth of incentives |
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Business size: running for eight years, $30 million turnover Before: no salary Start pay: two years in, around ~$55,000. Today: still ~$55,000 |
Notice that most business owners didn’t pay themselves until 1 or 2 years into their business.
Note: Live within your wage by setting a personal budget to avoid uncontrollable dipping into business receipts.
Instant cash loans in Australia
If you’re running a small business or a startup, you can get an instant cash loan.
Instant cash loans for businesses in Australia are great for you if you:
- don’t own any assets for collateral
- don’t like to offering up security
- need the money fast.
Cigno Business Solutions is accommodating to all applicants. What you’ll need for application are some contact details, a 90-day bank statement for your business, and a registered ABN.
It’s an easy process as it’s done online.
You’ll receive the funds within 2 hours once your application has been approved.
