I talked with a business owner recently that was telling me how his business is doing great, revenue is at $650,000 per year and growing each and every month.
His issue is that even with all that revenue, he is putting virtually none of that into his own pockets as the owner of the business. His business isn’t generating much of a profit or salary for the owner.
It’s so bad that some months he has trouble covering the rent on his apartment.
That shouldn’t be happening!
He should be pocketing plenty of money each month with that kind of a business revenue.
He definitely has some serious leaks going on in his business!
He needs to bring in some outside help and to update his business skills so that he understands what is going on and can run his business better and more efficiently in order to be turning a profit.
Business is too hard to work that many hours and not be getting paid for it.
Your Business Owners Salary Should Start At 6-Figures
As I’ve stated many times in the past, if you are going to go through all the work, the blood, sweat, tears and money of owning a business, then you need to be paid accordingly, and that starts with a personal income/salary of at least 6 figures.
I consider that the minimum threshold for a business owner. If that isn’t even on your radar screen, then maybe you are a business hobbyist instead of a true business owner.
I realize that in the beginning when your business is just starting out, that may not be happening. You may not yet be generating enough revenue and profits to be paying yourself $100,000 or more, but if your business isn’t at least on a path to make that happen, then you are working way too hard owning your business.
Now I understand that for tax purposes, many business owners take tons of deductions and don’t pay themselves much, but are you really living the lifestyle that you dreamed of before you started your business, or maybe you are merely comfortable, or maybe you are just scraping by.
Those last 2 shouldn’t describe a successful business owner, so if they describe you, then maybe you need to continue building and growing your business.
Do you agree? Should you be making at least 6-figures as a business owner? Is that in your sights? Or is there some reason that you think you shouldn’t be making that much?