CAN YOU AFFORD TO PAY YOURSELF? FIND OUT..

Source

Just before taking the leap of faith to be self employed find out with these tips if you can afford to pay yourself..

Cash flow

The most important thing in the mind of a prospective entrepreneur is their startup capital, then you can expect to have an automatic flow of cash once you start up the business..
Then go ahead and set your terms of payment, strive to collect your money within 30 days each month. Keep your terms as short as possible, because you can only pay yourself on time if you collect money from your clients quickly.

How much you pay yourself

Determine how much you pay yourself. You can base this on 2 tips:

First, how much you think your salary would be if you were doing this same job for some one else..

Second, What can your business afford to pay you, this should be included in the business plan while projecting your revenues. Your revenue plan will help you figure out if you will be earning less and if this venture will be worth it.

Seek Advice

Seek financial advice from an expert on the taxes.. How much you will have to pay and how often that will be.

Save

Now that you know how much you pay yourself, make sure you always save.. Research on best ways to do that and make sure you have at least six months cash reserve for the dry days..

Reference
the self employed