Mooloo's "Making my future, one stitch at a time"?

Blue_Choo_Choo

dktreesea wrote: »

It's really important to pay yourself, preferably every week. Just remember, the business isn't you; it's you AND the business. You both deserve your sales. I suggest setting up a standing order, transferring money from your business account to your personal account. Even if initially all you do is transfer £20 a week, and just leave it/forget about it, trust me, you'll feel so much better. Think of it as "me" money.

If it was £25.00 a week over 12 months she would gain more interest for going above the £1000.00 threshold.

dktreesea

Blue_Choo_Choo wrote: »

If it was £25.00 a week over 12 months she would gain more interest for going above the £1000.00 threshold.

£20 a week over 52 weeks is over £1,000. But I wasn't thinking so much of the financial aspects, more of the feel good factor. There's only so far that building up a business can carry a person psychologically (imho). At some point they need to stop feeling like they are working for nothing and start paying themselves something. Especially when they are employing other people. Yes, I know it is the business owner taking the risk, not the employees, but that doesn't mean you should work for nothing while they don't.


Businesses are like very greedy children - they'll soak up whatever money you throw at them. I know, I've just spent over £1,000 on mine in under 24 hours. It's really important to make sure you pay yourself. I leave all the money I need for next month's bills in the business and yes, if it were a bad week I would only pay myself £50. But it would have to be a really bad week.


When I started out, I transferred two amounts from my business, £20 a week to my personal account, (nowadays I transfer more if there is more to transfer, but back in the early days I just transferred what I knew for sure I made every single week, even in the worst weeks), and another £50 a month to an emergency fund for both me and the business. Over time I have used the business pot, for things like a quarterly rent shortfall back when we had premises. But I kept mine for me.


A lot of people, when they get paid, just in normal working for someone else jobs, treat themselves when they are paid, a personal reward for having worked so long and hard over the month. That's a good thing to do. Even if small business owners don't feel they have the time just yet to devote time to themselves, at least they should pay themselves something. And I don't mean ten quid out of the till here and there. I mean a proper transfer to their personal account.

Savvy_sewing

Yes I must start to put my name on some of the money! I realise that I am beginning to get rather low at times when I look at the bills etc and still rob Peter to pay Paul at home.
I shall set up a payment as suggested for £20 and save it for a treat.
I am transferring 10% of every payment that clears in the bank now to build up a reserve to pay the tax man, and to have a buffer.
I do plan to see the difference this year.

thorsoak

Don't forget, Mooloo, when you start to pay yourself, your pay is deducted from the profits (which you are hopefully making) and therefore the tax burden on profit is lessened. As an individual, you also have a tax-free allowance before you start to pay tax, so it makes sense to pay yourself first!

Eager_Elephant

I understand Mooloo is just registered as self-employed rather than as a limited company so all her profit is classed as earnings for tax purposes (and for Housing Benefit).

thorsoak

Eager_Elephant wrote: »

I understand Mooloo is just registered as self-employed rather than as a limited company so all her profit is classed as earnings for tax purposes (and for Housing Benefit).

...in that case, ignore my comments Mooloo - I thought you had registered it as a business on its own xx

Savvy_sewing

No as EE said I'm self employed. But I still have to start to pay myself sometimes.
I am really tired. I was going to watch the last X factor but I am more thinking that to curl up in bed would be more rewarding.
So I shall say good night and get comfy, ready for yet another incredible week ahead. Loads to do before I close for Christmas next week.

Blue_Choo_Choo

GL Mooloo.

Savvy_sewing

Morning.
I came up to bed, listened to my hypnosis tape "attract more money", and then went to sleep.
I woke about two times in the night, and had a really weird dream in between. I dreamt that for some reason I had left others in charge of the shop and when I was able to return it had been closed down and I was hounded out of the town. Except the shop in my dreams was not anything like my shop, in a complex of little shops in a big town. It was scary being chased etc and not knowing why. But like all dreams they morph into something else and the next dream was about finding a baby in a carrycot and trying to get him home, and somehow that became trying to get two babies in the car and only one set of restraints. Luckily for me the alarm went off and I didn't have to work out the dilemma!!!
Weird, weird dreams.
Cup of teatime now, I transferred £20 to my personal accounts and this morning I shuffled some Guardian Ship money around. So the emergency savings are back up to £500 in the ISA and some £467 in the next account.
The business has around £460 left after the staff wages etc went out and some £440 in the savings accounts ready for the tax man etc.
I do the business accounts on the computer first thing on a Monday.
Then I am upstairs to finish the jobs I cut out Saturday.
It's the last full week at school for DGD so I am hoping she is not off at all for anything and that I can plod along at work with a steady stream of work flowing in and out so we have the wages and the rent all tied up in advance of the break.
Have a good day x

keep_flyin

Hi Mooloo, Quick question about your thermal bags if it's OK to ask? How big a pot will they take, wondering if you could put a big commercial sized pot in one.