Are you thinking like an employee rather than an entrepreneur?
Taggart: “G’day; I’m here at Noosa, it’s a fabulous day and I thought — a perfect time for another Taggart tip.
I’m often asked by small business owners whether or not they should be paying themselves wages from their business.
The short answer is that employers pay employees wages for the work that they do. Employers on the other hand; work no set hours, job description in most cases and working for profit they have got a business which is on the line (at risk) and those profits are something that is generated from the activity that they do.
So, my tip is if you’re a small business owner; stop thinking like an employee and start thinking like an entrepreneur and stop taking wages from your business.
Instead, take drawings which is in advance on your future profits.
That’s my tip for the day”
Thank you tuning in to watch another of our Taggart Tips, a series of short video tips that can help you run, manage and grow your business. We hope you have found the information useful and we will have a new Taggart Tip out for you shortly. For any urgent concerns we encourage you to get in touch with the team at Taggart & Partners today.
*** Our series of Taggart Tips are intended for guidance purposes only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.
Updated 8 July 2020