When should a business owner be entitled to salary?

[Alisco]

As a business owner you manage and run the business yourself,so you are entitled to your profit at anytime since you are not touching the capital the business will grow, because it is out of the profit inform of salary that you can structure the next face of the business.

 

[Kelly5]

Wether the business is having a steady flow of income or not, the business owner has every right to be paying himself at whatever point in the life of the business. Because it is his place of work

 

[Ayokex]

I agree, I think it is the most basic mistake that business owners make, resisting the temptation to dip your hands into the funds meant for business. That is why it is important to have a different source of income, while you allow the business to grow.

A business owner is not expected to be starving or borrowing money to take care of himself in the name of managing a business. The moment the business start to generate income then the owner is entitled to a salary no matter how little.

 

[Kane]

As a business owner, I allotted salary to myself from day one. If I work full time and if I do not give myself salary I how will I manage my expenses. If I don'ty give salary, I will not survive

 

[Dowenship]

To me, a business owner taking out of the business earnings for personal projects at an early stage of the business is STEALING FROM THE BUSINESS.

A business owner who wants the business to grow won’t be tempted to use the business earnings for personal projects. The owner should be entitled to salary when the business is having steady cash flow.



Have you been stealing from your business?

When the business have brown to a point where the profit is no longer sacrificial to the business but its tempting enough to crash the business. then business order must be under a salary...

 

[Sotherefore]

a business owner is the manager of the business and there is no need for you to give yourself salary from your business , if I was to do this I will only take the money that I can use to feed myself and my family from that business and whatever profit remains I'll put it back into that business and grow my business to the standard that is expected in the modern society.

 

[Patrik]

why is it called 'stealing' when it's your own business at the first place? i wouldn't call it stealing but lack of management as business funds have to stay in business

 

[Damscooguns73]

Concerning when should a business owner be entitled to salary. Well, I believe the owner of a business is entitled to collecting a salary or a pay when there is a significant growth in the business, though he is the owner of the business but for proper management and financial purposes, the owner should be considerate

 

[Sheyemanu]

Well, in reply to your question in the above post concerning when a business owner should be entitled to receive a salary payment from his business, I am of the opinion that as long as you have a positive cashflow into your business

 

[cowantussie]

Pay myself first? I can barely pay myself at all, let alone do it first!” If that sounds like you, you’re not alone. Many business owners struggle with the “pay themselves” issue every day. But let’s state the obvious here: even business owners have to eat.

You likely started your business so you could pursue a venture that you love while (eventually) making money doing it. It takes some effort, and some creative accounting, but the rewards of paying yourself first are well worth it. Let’s explore why this is so critical.

 

[Richard92]

A business owner should be entitled to salary when his business has been fully established, I will say in the first 2 to 3 years of the business the business owner should not receive salary but give to the business until it is fully establish

 

[Shigobad20201]

A business owner should be entitled to salary when his business has been fully established, I will say in the first 2 to 3 years of the business the business owner should not receive salary but give to the business until it is fully establish

When the business has been established and fully functioning and the company is debt free, thats the time the owner of the company can start getting a salary for his work.

 

[Noor khan]

Hahahahahha lol. It sounds really funny in my opinion. You don't expect an entrepreneur not to derive benefits from his company. Yes, he has every right to earn little from the proceeds of his business as far as it doesn't affect the growth of the business negatively. You don't even have to call it salary, because it doesn't make sense. He can use a portion of the income at any time to finance any of his personal project that might tell directly or indirectly on the original business.

 

[Blue house]

Well their is no time you can't withdraw from your business especially when its in profit, all you have to do is withdraw with sense and spend with sense. If you have an emergency case your hands are tied to withdraw.

 

[FreshKaz11]

To me, a business owner taking out of the business earnings for personal projects at an early stage of the business is STEALING FROM THE BUSINESS.

A business owner who wants the business to grow won’t be tempted to use the business earnings for personal projects. The owner should be entitled to salary when the business is having steady cash flow.



Have you been stealing from your business?

So are you now saying me as a business owner am in need of urgent transaction and I need much funds to pull it out,so and I know I have some money down there in my business account I won't make use of it. That's not possible I guess.

 

[Kane]

If you are working full time and if you do not have another income source, I think you need to draw salary from the first month. You can wait if you already have another source of income

 

[Sotherefore]

there is no need for you to do this because your business is your business and you're entitled to take whatever profit you make in the business,you do not generally have to entitled yourself to salary because you should only take the little profit you will need and invest the rest of the profits to grow the business.

 

[Setho]

It would be a very wise idea if the owner of a business is entitled to salary when the business can afford to. That is to say when it has made enough consistent profits for a long time.

 

[McIrx]

When starting a business, the business owner needs to keep aside the funds to take care of himself or herself for at least six months. In that period, the business owner will be disciplined enough not to take any cent out of the business.
I prefer a business to break even before the owner thinks of taking any money out of the business. Talk of delayed gratification.

 

[Prettyjanie]

I agree, I think it is the most basic mistake that business owners make, resisting the temptation to dip your hands into the funds meant for business. That is why it is important to have a different source of income, while you allow the business to grow.

I agree with you, a business, owner should not be tempted to start harvesting from thee business when it's not time. You can wait until your business has grown to a point where you can earn monthly from the business.