Are you sure?
What if you had to replace your own time with a suitable qualified/experienced alternate salary? Would you still be making a profit then?
Whilst I’d like to think that the answer is ‘yes’ there are a few reasons why it might not be the case.
- You might be prepared to accept a lower ‘salary’ (perhaps a mix of salary and dividends) in exchange for more flexibility or being your own boss. Make sure that you don’t lose more income than you are intending.
- You might be in a start up or growth phase of your business when you are working longer hours than expected. Make sure that this doesn’t go on too long or you may burn out. If you’ve been in business for over three years and aren’t happy with your profitability per hour then it may be time for some business advice.
I see far too many business owners (including accountants!) earning less than minimum wage. You may be doing something you love but you also deserve to earn a living from your work.