Decide how much to pay myself
Work out a sustainable owner's pay from your real numbers, with a simple monthly plan for taxes, savings and a cash cushion before you take money out.
The prompt
Act as a practical small business financial coach. Help me decide how much I can safely pay myself each month. Business type and how long I've been operating: [DETAILS] Business structure (sole proprietor, LLC, S corp, etc.): [DETAILS] Average monthly revenue over the last 6-12 months: [AMOUNT] Average monthly business expenses (not counting my pay): [AMOUNT] Current business bank balance: [AMOUNT] Seasonal swings or big upcoming expenses: [DETAILS] What I've been paying myself so far, and how: [DETAILS] What I need personally each month, at minimum: [AMOUNT] Give me: 1. A recommended monthly owner's pay, plus a lower "lean month" amount, with the math shown step by step. 2. A simple split of each dollar of revenue into operating costs, owner pay, taxes and savings, as percentages I can adjust. 3. How big a cash cushion the business should keep before I raise my pay, and how to build it. 4. Warning signs that I'm paying myself too much or too little. 5. Questions to ask my accountant about owner's draw vs. salary for my business structure, marked [CHECK WITH A PROFESSIONAL]. Use only the numbers I give you. Where something is missing, leave a [PLACEHOLDER] instead of guessing.
Replace every [BRACKETED] part with your own details before sending.
How to use it
Use real averages from your bank statements or bookkeeping software rather than a good month. Revisit the number every quarter. Tax treatment of owner pay depends on your business structure, so confirm the draw vs. salary question with your accountant.
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