PDA

View Full Version : Money Question


mrbenfer
07-27-2003, 03:30 AM
I am interested to know how the business owners pay themselves? I bring in money at the end of the month and put it into the business. I dont really know the correct way to pay myself.

Do I take a % of my total earnings after I pay my overhead?
Do i pay myself a salory?

I'm new to running a business and would like in-site on how you take care of your money.

Thanks

P&P LawnCare*LandScape

Bob Minney
07-27-2003, 10:30 AM
I set myself a draw of $X per month. Transfered from business account to personal account.

GLAN
07-27-2003, 11:04 AM
Your a single operator correct?


What you make at the end of a week, month, year after expenses is yours.

Investing back into the company, your investing in yourself and your future.


As a sole proprietor. Any profit at the end is your income.

Incorporated. Then you would provide your self an income salary, based on a set salary or hourly wage. Taking a salary allows you the employee benefits from your business. Workers Comp. Disability. Unemployment................

Dr. Mow
07-27-2003, 11:54 PM
for the first year to year and a half I was a part timer, but i did start out with 61 ztr and 36 wb, every dime I made went directly back into the business. Been in business for 5 years now, and when I do payrol on fridays for my crew, my check is the first one I write.:D :D Always pay yourself first...;) ;) ;)

KenH
07-28-2003, 06:41 AM
Originally posted by GLAN
Your a single operator correct?

Incorporated. Taking a salary allows you the employee benefits from your business. Unemployment................


Unless you are an officer.......:rolleyes: :mad:

Grassmechanic
07-28-2003, 09:09 AM
I allow myself a salary duing the season that is just enough to get by on. Then, at the end of the year, after all bills are paid and all expenses are met for startup in the spring, I allow myself a hefty bonus.

mrbenfer
07-29-2003, 10:36 AM
Hey.. Thanks for all the input.

P&P LawnCare*LandScape

Gene $immons
08-06-2003, 08:39 PM
I rarely pay myself, however all of my bills, mortgage etc are paid by a company check. 1 account.

I generally like to carry around $100.00 in my wallet, so I go to the bank and cash a check for that amount when I need cash.

Works well for me.

tiedeman
08-07-2003, 08:32 AM
I would personally try to split your personal and business expense apart from each other. But at the end of the year for a solo operator you still have to pay in 15% of your net income.

glenjr10
08-08-2003, 12:51 AM
I don't know what school of business you came from, but I learned that the owner is the last one to get paid, especially for a new company.

Pay employees, and then the rest is for yourself.

Just my .02

mtdman
08-08-2003, 01:06 AM
I always put a certain amount away for bills, savings, whateva the business might need. The rest is all mine. Business account is definitely seperate from personal account, as are business expenses and personal expenses.

:D

Dr. Mow
08-08-2003, 11:35 PM
glenjr10,

if you can not pay yourself, you should not have employees. If you will read my statement , the first couple years I did not even pay myself.:p :p

mtdman
08-09-2003, 01:43 PM
Originally posted by Dr. Mow
glenjr10,

if you can not pay yourself, you should not have employees. If you will read my statement , the first couple years I did not even pay myself.:p :p

I will say this is true for the lawn business, which is a type of business where the owner should probably start out doing ALL the work at first. For many other kinds of buisiness though, ie retail, the owner can't do all the work and must hire employees. I know many business owners that don't get paid for a while at startup.

So, I agree in our case. If you can't pay yourself because of employees or expenses, you are doing something wrong. IMHO.

:D

DUSTYCEDAR
08-09-2003, 03:38 PM
SAVE SAVE u never know when u will need it

Team Gopher
08-09-2003, 07:10 PM
Here is a link about salaries that may be interesting for further research.

average salary (http://www.lawnsite.com/showthread.php?s=&threadid=50826)