Categories:Funding & Financials
October 9, 2012
My grandmother, who owned a small retail store for more than 40 years, used to tell me that when it comes to entrepreneurship the owner was always the last to get paid. Despite the fact that many entrepreneurs start out with dreams of large paychecks, it turns out my grandmother is right. The business owner may get the spoils of the business but only after all bills have been paid, employees have been paid, and the taxman has been paid. Anything that’s left over (ha!) is fair game. In the last few weeks I’ve had multiple conversations with small food business owners about just this topic and it got me thinking. What do you do about paying yourself? Are you forgoing payment right now in order to fund the business? Are you holding off hiring employees because you don’t have the money to pay them and pay yourself? Or do you collect a regular paycheck and, if so, how do you determine what your time is worth? I’ve got a few thoughts on all of this that I’ll share later but I wanted to get your take on it first. Care to share??