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Financially Supporting Your Business Without Debt Part 2

Financially Support Your Business Without Debt Part 2

"Most business owners say "I don't want to pay myself," At the beginning that's fine but normally this person has received some poor business advice regarding owners pay." - Y. Michelle Coard

Many business owners are trapped in the mindset that your business must have debt, or you can’t pay yourself out of a normal payment schedule.  Another extreme is the business owners that believe everything they earn is owners pay or profit.  You can start or support the business without debt or minimal debt.  You will be much happier when 2-3 years down the road you can keep most of your profit.

                Consider the following:

1.      Debt is the promise of future income.  I would save first for the business and be very careful about the expenses you select.  Believe it or not, you don’t need a large advertising budget to grow.  You don’t need a $5k website, but you will need accounting, legal, and tax advice.  Start smaller, and you will find more sustainable growth.  You can start the most business without large amounts of debt.  If you don’t have the income to secure debt, you will have to pay yourself less while you leave more in the business.  Notice I said less not all.

2.       The IRS Internal Revenue Service automatically assumes business owners pay themselves. Specific business structures require the owner to pay themselves.

3.       Make a small purchase and grow over time.  Don’t start with payroll.  Instead of not paying yourself and trying to hire someone else to do the job yourself.  You will be surprised how much investing in the software will help, and over time you can afford to hire help and pay yourself.

4.       Don’t take all the money out of the business as owners pay.  Plan your spending.

5.       Use profit to reinvest back into the business.  You can afford to reinvest profit because you have already paid for yourself.  Profit should be a bonus.


Your pricing will need to include enough of business and profit margin to allow you to pay your labor cost as well as operating expenses.  Avoid the mistake of past business owners that had a hard time with pricing and maintaining their accounting records.


Accountant in Fuquay, Small Business Accountant, Pricing, Owner's Pay

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