Most business owners underpay themselves. There’s a pervasive belief among
small business owners that “One day I’ll get mine.” These are good people raised with the simple edict that you should work hard, treat people fairly, and be patient. When they have a bad year with no profits, they take a second mort- gage on their homes so they can afford to pay their workers a holiday bonus. It’s nice to treat people fairly, but not at your expense. They think if they keep sacrificing they’ll eventually be able to sell the busi- ness and retire. But the sad fact is that there’s often nothing left to sell when the time comes. This mindset doesn’t get them a condo in Florida and a com- fortable nest egg. It gets them nothing but a large amount of personal debt. In- stead of accumulating wealth, they’ve slaved at a job for decades just to cover payroll and pay the bills. Always work to make a good salary. Then cover the expenses. Not the other way around. If the numbers don’t line up, don’t even start, because you’ll al- ways be fighting an uphill battle to stay ahead of your expenses. This a basic issue of survival. How are you going to make that climb if you are not setting aside enough cash for your own well-being?
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