You’ve Started a Business… When Will You Get Paid?

Have you ever heard this story…?

In 1995 a textile mill in Boston called Malden Mills burned down. It had thousands of employees and Christmas was just a few weeks away.

The mill was covered by insurance and the owner was 70 years old. Nobody would have been surprised if he had just let the employees go, cleaned up the site and gone out of business.

Did he? No. He paid those employees for 30 days and included Christmas bonuses. Then he rebuilt the plant and hired most of them back.

Why?

Because he felt a responsibility to the community.

And That’s Not the Only One…

You would think that all business owners turn into greedy, three-eyed monsters if you just read the headlines, but it’s not like that at all.

It was easy to find another example similar to the Malden Mills story, right here in Colorado Springs, where the Flying W Ranch went beyond its obligations to protect the homes downslope from the destroyed ranch after the Waldo Canyon Fire.

I’ve interviewed hundreds of local business owners and many of them have told me that their employees make more than they do. Of course, they are required by law to pay the employees and not required to pay themselves at all, so you might think they only do that because of the government.

That’s not true either. Many local businesses pay employees more than they have to, even when the owner isn’t getting paid.

They do it because they want good employees and they want to be good employers.

So… When Do I Get Paid?

When you’re preparing to start a business, you’ll need to take your own needs and the type of business into account.

Understand your own financial situation

Can you afford to hire people and pay them even if there is nothing left over for you while your business is growing?

If you are buying raw materials and manufacturing something, it may be a while before your income exceeds your expenses. How are you going to pay your bills?

It might make sense to start your business in a way that has fewer expenses.

What kind of business are you starting?

This is one of the reasons why I’m such a big fan of a network marketing business as a hands-on practice run. You don’t have to pay anybody, even when you have a team generating income for you. You get the experience of managing a team without the corresponding obligations to pay them.

Another option is to start a simple service business. If you are doing something like cleaning or repairing household items, you can get the business rolling without hiring people. If the business is profitable then you’ll get paid.

Prepare for Success

Now is a good time to get in the habit of getting in touch with your business and spiritual beliefs every day.

 

Now understand, I would not ever tell anyone to get up before 8AM every day. I’m an advocate of sleeping fully, but I recommend this book because it does a good job of explaining how to develop profitable habits that set your day on the right track.

At some point, you may have to make a decision about when you’re going to get paid. Start preparing now so that you know how to make the right decision.

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