Watching your plants flourish as much as your horticultural centre has been a rewarding experience. You’ve helped people purchase the perfect plants to decorate their home and give a bouquet gift to loved ones. Yet what about helping yourself to the money that your business has brought in?
From the time you first opened your horticultural centre to now, you haven’t drawn a salary for yourself. Instead, you have followed the advice of business experts and ploughed the money back into marketing and branding the business. Yet the reason why you opened the centre, besides being your own boss, was to create a better life for yourself from the money you brought in.
When Should You Plan to Pay Yourself?
The truth is you should make something from your business idea, your hard work, and your time that you have placed into the horticulture centre. You should be getting some type of money that you can place into your personal bank account and future retirement savings.
Make plans to draw a salary from the moment you develop your business plan, as you should decide how much you will get and the pay schedule. Even if you wait a few months to take a salary as you get the startup on its feet, you have an objective that you can work toward and look forward to in the future.
How Much Should You Get?
This topic is up for debate. Some business professionals believe that you should only get whatever is left over after paying all debts, overheads, employee salaries and other expenses created by the horticultural centre. Other business professionals believe you should be paid what you are worth.
Getting paid what you are worth can be defined in several different ways. You may decide on a salary based on what you need to pay off basic daily expenses. Another route is to pay what you believe your position is worth. You would calculate what you would make in the position based on what other employees in the same position make as a salary. A second option is to calculate what your previous salary was while subtraction any overtime or bonuses. Then you need to multiply in the inflation percentage to that number figure to get the salary amount.
4 Things to Consider When Paying Yourself
- Pay attention to tax obligations and benefits when drawing a salary from the business
- Keep accurate accounting records so you can file the right business taxes
- Delay taking a salary if your horticultural centre has expenses, debts and employees to pay first
- Wait until your operations are in the black before paying yourself
Now is the time to really look into your cash flow and balance your business budget. You may be surprised to find certain processes in your horticultural centre where you can cut back on operational costs. This savings can translate into more efficient processes and give you enough money to pay yourself for all the hard work you are doing to make your business a success.