Alright, so here’s the deal. You started this whole business thing not because you wanted to work for free, right? I mean, sounds crazy, but some small biz folks really do forget to pay themselves. Why? Maybe that looming fear of going under — after all, you hear half of them don’t even make it past five years. Yep, it’s wild.
But, come on, underpaying yourself? That’s just bad news. So, let’s talk about making sure you’re not broke in the future. Gotta include yourself from the get-go, seriously.
So, we start with — oh, wait — did you know dogs dream while they sleep? Anyway, where were we? Oh right, let’s chat about making sure your biz isn’t running on fumes before you actually start paying yourself. Helen Dao throws in that you need consistent profits and a financial cushion. Seems obvious, right? But hey, it makes sense.
If your sales are rolling and covering all the expenses — bingo! — you might be ready to treat yourself a bit. And, stash some cash for those rainy days. Like, imagine six months slipping by with zero income but everything’s still fine. That’s the dream, isn’t it?
Oh, but everyone’s journey is different, right? Could take one year, or five, or who knows, a million? Depends on how daring you are.
Let’s talk payments. Cover your living costs but make sure your biz isn’t starving too. Taxes and surprises? Always lurking. But if there’s leftover cash — loans, savings, or just getting yourself something nice. Maybe not that llama-print blazer though, or do — I mean, who’s judging?
No formula fits all here, really.
Think about the future, too. Jordan Rodriguez would totally say don’t put all your eggs in one basket. You got a business worth a million? Great. But if it’s all in one place? Here comes trouble if things go south. And what about when you just want to chill and retire? Planning early is just smart.
Retirement plans? Tons out there. Automate and forget about it — Dao says that, to avoid that last-minute scramble for cash. And find some pros to help out. They’re worth it, I’d say.
Now, be bendy. Cash flows high, cash flows low. Keep a little flexibility. Emergency fund — kind of a lifesaver. Line of credit? Maybe.
And when you’re raking it in? Give yourself a raise! Let your income grow as your biz does.
That’s the messy, scattered plan, really. Whatever works, right?
