Perhaps one of the most difficult aspects of starting your own business from scratch is assessing how to divvy up your initial earnings with proper balance. Specifically, when setting your personal salary, it may be tempting to short yourself by being overly cautious with what you set aside for future business investments and other expenses.
Exhibiting a responsible degree of financial caution is by all means one of the most important things to remember when managing a new business in its infancy––especially in turbulent economic times. However, it is possible to sell yourself short when you are seeing success which can translate into personal and professional detriments.
Although it’s great to fall in love with your product or the service you provide, it’s important to keep your own finances in balance with what you provide. Here are some warning signs that might tip you off to a problem: (more…)