Are You The Boss or The Employee? Part 2
Posted by: THAT Painter Lady in Faux Business Skills, Start Your Businesscont;
Your are the Boss and the Employee!
In order to get yourself to thinking straight on this fundamental matter, it is a good idea to regard your business as a firm or corporation and yourself as its employee… its hired manager. Even if your business does not become a corporation… this still can be a useful technique.
Supposing your business should grow to many times its present size, and, needing capitol, supposing you should sell forty per cent of the stock to outsiders. You certainly would then insist on paying yourself a salary as manager before you allowed the stock holders who put in no time or effort towards building the business… to share in the proceeds.
The principle is the same if you happen to own all the stock. You, as manager, should receive your salary before you, as stockholder, get your dividends.
Then there is the competition side of it… competition for your services… and for your money. As president and general manager, you certainly should expect your own corporation to pay you just as large a salary as you can make by working for somebody else, and as stock holder in your company, you expect the corporation to pay you interest on the money you have invested.
No Other Faux Painting Business Could Hire You Without Paying You A Salary
If your business as it now stands is not able to pay you the salary that you could get from another job, and if it isn't sufficiently profitable to pay you a satisfactory return on the money you have invested, the certainly there is something wrong and you could make more money by actually working for somebody else and investing your money in other ways.
No Other Painting Business Could Rent Your Storage Space and Office For Nothing
Read the rest of this article: Your Not In The Faux Painting Business Just For Fun
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