When you are in business, you want to make sure that you are paying yourself, not just covering the costs.
At Many Rivers we say that a hobby is something that costs you money and a business is something that makes you money! Therefore, an important part of business is knowing how to pay yourself.
- There are important tax and reporting obligations and it differs depending on the nature of the business you are operating. The focus of this power tip is on paying yourself as a sole trader.
- There are two main ways sole traders pay themselves:
- Wages – paying yourself for your work in the business.
- Owner’s drawings – paying yourself from the profits of your business reflecting a return on your investment
If you would like to read an article which outlines how to pay yourself, here’s the link:
“The most useful thing was that we actually had someone that we were answering to. Someone to keep us on track. If it was left to us, still learning our way as business owners, sometimes between not knowing how to navigate legalities and not knowing where to turn to get information, or even just life circumstances getting in the way, there can be delays. But having the meetings with Penelope spurred us into action. She helped us overcome most of our stumbling blocks and hurdles, gave us fresh perspective and kept us accountable.”
– Emma and Martin, The Devils Own Ice creamery, Westbury TAS
Don’t stop now! There is so much more to learn about how to start, stay and thrive in business and we have plenty of resources to help you get there. For a clearer understanding of what resources and topics we have available, take a look at our resources roadmap here and plan your learning journey now!
For existing clients, make sure you reach out to your business coach if you have any questions. It is always a good idea to talk about what you just learnt. They might even have some more tips to share with you.
If you are new to Many Rivers, find out more about what we do by looking at some of our client stories. Each of our clients have a very different journey to share about their business and their experience working with Many Rivers. You can read about the different programs we have available here.
We want to encourage more and more people to take that first step towards building on their small business ideas, or their existing business.
We’re here to support you the whole way.
Please take the quick Small Business Self-Assessment and see if we are right for you.