At what point when growing a small business should you begin to pay yourself?
I currently live with my mother and I am eager to move out. I've been told that the money you make in business should be reinvested in the business. So, when can I start using some of the money to help my personal life?
To start a business, it's a good idea to have at least six months of living expenses set aside (ideally, even more) so you have the time to get your company launched. It usually takes twice as much time and money as you think; so to minimize the risks, you may want to consider keeping your expenses lower as long as you can until your company starts making some money. Then move out.
Sound tax and accounting procedures are essential to growing a financially secure company. But multiple hiccups threaten the accuracy of these processes, elevating the risk of compliance penalties and reputational harm.