So you saved up and started out on your own. Being your own boss and creating livelihood for a few others can be as rewarding financially as it is to the conscience. But in taking care of the team and the operations of your spanking new business, forget not yourself!

Here’s why paying yourself right from the start is important:

1. Lean Operations:

Having a line item in your accounts for the founder’s salary right from the start helps you plan for overheads and the necessary revenue to sustain the business. You end up charging significantly low to attract customers, but eventually you are trapped in your own maze – you can’t raise the prices of the quality you deliver!

2. Because You’re Worth It:

If you’ve started out after many years of experience and a great employee track record, then your experience and exposure count for a lot more than something. While it’s noble to let go of your own share of your enterprise’s progress, depriving yourself of that monthly reward can eventually sap you of your spirit.

3. Clean Financial Statements:

Intend to approach investors or a lending institution for a loan? One of the key entries investors especially want to see is how much the CEO earns. Financial institutions also examine the financial statements for the CEO’s pay package. On finding it absent, queries are raised and that road seldom leads anywhere near the path of success.

4. Time Value of Money:

Your qualifications, experience, and prowess are brought to use in your business to grow it and make it profitable by generating revenue. All of this takes time, and that time, literally, has a metre attached to it when you’re spending it growing your business. If nothing else, it is this monetary value that you need to attach to your time and pay yourself appropriately.

5. Show Commitment Paying yourself:

Even if to reinvest the profit back in your business as additional capital – is indicative of a high degree of commitment to grow it. When you steadily draw sustenance from the start-up, you also realise that as its brainchild, you are responsible to keep the machines oiled and running to keep you and your team afloat. It is understandable that some of you need to run lean operations in your startup at the beginning. But if you’ve earned a salary in the past, that too for long enough, then the habit is hard to abandon. But we pursue business to make money – most importantly of all, for ourselves. Paying yourself even a small sum on a monthly basis will boost your confidence to set new milestones and reach new heights.

other blogs

Smart Career Smart Money March 11, 2023

Simple Money-Making Ideas for Stay-At-Home Parents

Being a stay-at-home mom/dad, your work is technically never done. It’s not an easy job and certainly not lucrative because warm hugs and your child’s cute drawing won’t pay the bills. But thankfully with the advent of technology and possibly the only silver lining of a pandemic, work-from-home jobs are more common than ever. Here […]

By lxmi@admin
Smart Career Smart Lifestyle Smart Money February 16, 2023

How to Create a Budget You’ll Stick To

Kareena, a young 30 something woman recently joined as the head designer in a fashion designing company. Even after getting a large pay hike, she still was frequently worried about not being able to save much from her salary at the end of the month.  Well, in order to save enough by the end of […]

By Team LXME
2021 new year review
Smart Career Smart Lifestyle Smart Money July 13, 2022

LXME’s 2021 Year in review!

2021! What a year it was, one hell of a rollercoaster with lots of ups and a few downs. With the support of our LXMEs, we’ve been able to accomplish so many things.  Let’s take a sweet ride down memory lane and relive some of our greatest achievements this year…  → Empowered 80k women in […]

By Team LXME