Three Reasons to Give Yourself A Raise

 3 Reasons to Give a Rake to Yourself

The best part about owning your own business? Being able to set your salary. You don't have to listen to your boss telling you what percentage of the profits you get - you can make that call.

It can be difficult for small business owners to determine what salary they should receive. With so many labor and capital expenses, along with pressure to make the business financially profitable, owners might choose to "pay yourself last", living on less than market wages or relying solely on their savings.

This might sound like your situation. Consider what you are worth. It might be less than what your competition pays or more than you would pay to hire the right person to take your job. No matter what the number is, there are three great reasons to raise your salary.

A fair salary will keep you honest about business success

While there are many reasons you started your business, making money was probably the most important. You can't have a successful business without a good salary. Being fair to yourself will help you face up to the current state of your business.

It's not fair to expect to get a steady income. A low salary can impact your ability save for retirement or provide for your family. It's not fair to expect to be paid a lower salary than the market every year to maintain your company's viability. You need to assess the current state of your business. Although you may believe that you are funding a sinking ship, the truth is you are actually helping it to survive.

A Fair Salary keeps You Focused

How you use it will reflect how much you value it. This holds true especially for your own time. Being able to pay yourself what you are due allows you to be a good steward of your time and make informed decisions about what to do with it and what to delegate.

Every business owner is responsible for ensuring that employees perform at a level that is comparable to their wages. You are both the owner as well as the employee. Is it really necessary to fill envelopes? Or should you be calling customers? Spending your time well is a better way to manage your company's largest expenses.

A fair salary can help you sell the business (if and when you choose to).

Your business might not be the right fit for you. When it comes to selling your business, think about how it will appear to potential buyers.

Nobody will want to buy your business if the owner makes a small salary. What if the owner of a carpet cleaning company made only $15,000 per week and worked 80 hour weeks? Would you consider buying it? We didn’t think so. You'll be much better positioned if you decide to sell if you include a fair wage for yourself in your business balance.

SBA Loan Financing is Possible

Are you ready for the raise that your career deserves? SBA loans are a great choice for small business owners looking to grow their business and increase their salary. First Bank SBA guarantees that getting an SBA Loan is easy and straightforward.

SBA loan financing has long repayment terms, up to 25-years, low monthly payment, no balloons, covenants, competitive fixed and variable rate options, and high repayment terms. A good first step is to work with an SBA loan adviser. Click here to fill out the loan qualifier form. Reasons to Raise