When should business owners take a salary from their startup?
Deciding when to take a salary from your startup is a crucial decision that carries both personal and business implications. A common rule of thumb is to start drawing a salary when your business becomes profitable and stable, which often takes at least a year or two. However, it's also important to consider other factors such as the sustainability of the business, the financial needs of the owner, and the cash flow situation. Remember, paying yourself too early or too much could put your startup at risk. Ultimately, each business owner must make this decision based on their unique situation and financial needs.CONTINUE