Tuesday, 13 May 2014

Step 21. How much should I earn from my company?

Good question that can't remain without answer. Whatever you do on your own the first thing in your mind is you are trying to do something better or different. Doing that better or different helps to motivate, be creative, concentrate on your business. Money is something that shows how effective were your efforts to get to your goal.
At the very beginning I would recommend to leave money in the business, buy materials, stock or whatever needed in terms of supply. In case of consulting business you can invest in little marketing things for giving to your clients like pens, notebooks, calendars etc. There is always a way to invest properly.
When things are more or less up and running you can go for removing the money from your business and putting them... and here, hold on. You can put the to your pocket or divide that amount you can allow to withdraw without harm to your company and put 10% at least into PAMM or find any other opportunity to help your money make money for you. Money should work FOR YOU at all times.
In terms of % I can tell you from my experience that at the very beginning I never assign any salary to me personally and I withdraw 10-15% from the overall margin monthly. Not harmful and keeps company up and running.