The topic of “paying yourself” comes up fairly often in the Savvy Shopkeepers Facebook Group. It always surprises me that at least half of the shop owners in the group don’t pay themselves. And I have to tell you, this topic tugs at me almost daily.
I often tell myself that I’m going to find a way to convince shop owners to start paying themselves and then teach them HOW.
I know, I know… I can’t “change the world” but I can take baby steps towards this goal of mine.
And when I put my mind to something, I tend to figure out a way to make it happen. I can be persistent!
In the meantime, this blog post won’t be the post that covers how or how much to pay yourself. This is simply going to address the “WHY”. If you’re a shop owner who isn’t paying yourself, keep reading!
Here are my top 5 reasons you should start paying yourself NOW:
You’re a Hard Worker – You Deserve It
You love what you do, you put your all into your business and you deserve to be compensated for it. Not paying yourself, can lead you to become resentful towards your business. You started your business because it makes you happy. Whether you make and sell jewelry online and at markets, or you curate beautiful merchandise to sell in your brick and mortar store – you chose this path because it’s what you love to do!
Paying Yourself is an Incentive
It feels good to earn a living doing something you truly feel passionate about. Once you start, you will actually look for ways to improve your business and sales so you can pay yourself more!
I am not a financial expert, so please don’t ask me if this would be the case for you. It’s a MIGHT. But, I definitely recommend checking with your accountant.
It’s a Good Habit
Figuring out how much and when to pay yourself will force you to look at your numbers. This should be done monthly! There are some great software tools that will help you do so! This is a GOOD habit. It will keep your business healthy too! Might even make you grow.
Let me add that if looking at your numbers doesn’t become a habit this is a good indicator that you might want to hire a bookkeeper. If you hate the bookkeeping, if you hate running the numbers, if you NEVER run a financial report because you don’t know how, it’s time to delegate that part of your business! Let the bookkeeper handle this new habit for your business.
Get Off The Hamster Wheel
You shouldn’t keep chasing the proverbial rabbit. It can take YEARS before you accomplish that goal you have in mind. I often hear shop owners say, “When I hit ‘X’ goal”, I’ll pay myself. Depending on what the goal is, “X” may never happen. I completely support re-investing in your business – that’s critical to success. But, you can’t live off future possibilities forever.
Before you throw out all of the “buts” at me…
…but I have business debt
…but I have shelves to fill
…but I’m not making enough in sales
…but I need some new equipment
Here is mine…
BUT if you invest every dime you have into your business and don’t take a salary, you put yourself at risk for not having anything to show for all your hard work.