How to Set your Salary as a Startup Business Owner

in Forum: Startup Funding

Source of this discusssion: /articles/3755/1/startup-owner-salary.asp Page description: You’re starting a business for financial independence and a fat owner’s paycheck, right? That can take a while. Being the boss often means being paid less or last until your company gets its legs. “You pay your employees first and if there’s anything left, then you get that,” says one veteran. “That’s life as an entrepreneur.”

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Aug. 11 2007 at 8:54 PM
Posted by: crockertax “Quote Reply
Great article and great advice. I have a good paying day job running a company. But, I'm setting up a startup business on the side. Mixed motivation to be sure! Kasey Cotulla KC Crocker Tax Co. www.crockertax.com
Aug. 12 2007 at 1:37 PM
Posted by: Raisecapital02 “Quote Reply
If you have a business and you are starting it up alone, I would not give yourself a salary if you are not sure about the sales potential of the company. I would look at the net profit and take a share at the beginning, and as the company grows, you can give yourself a set amount.Raise Capital in 90 Days Online Fundraiser 1.0 is helping Entrepreneurs Raise Capital!
Aug. 12 2007 at 2:22 PM
Posted by: robertj “Quote Reply
My recommendation is to include a "reasonable" salary for yourself (from day one) during your planning stage. This will enable you to project the capital needs of the business more accurately. If you have other sources of income or support that will cover your monthly bills, you can decide to adjust the capital requirement by forgoing your salary for some period of time. It really just means that you are putting the capital into the company over time (lost wages). The key is to be clear on how long you can (or want to) exist without personal income as compared to how long it will be before the business can afford to pay you. Business Growth Masters, LLC - Capital Catalysts for Entrepreneurs Home of the Scalable Business Plan and QuikStart Capital Programs http://www.bizgrowthmasters.com info@bizgrowthmasters.com