Pay Yourself First

What is your desired paycheck? How big must your business be to pay you that much?

Make sure this never happens to you: “My company is growing, but I’m not putting any more money in my pocket. I’m still occasionally ‘loaning’ money to the company to cover payroll. And I’m still carrying uncashed payroll checks I’ve written to myself.”

The first step is knowing how much you need, so that you can find a way to bring in that much. These exercises take you step-by-step to calculate how much revenue your business must bring in to cover all your operating costs, pay you well, and generate a profit besides.

These exercises are tailored to small, owner-run businesses—service businesses such as consultants, contractors, or salons; retail and wholesale; restaurants—with or without employees.

For home-based solopreneurs, it will force you to separate your home and business expenses—a key step in becoming a “real business.”