What Entrepreneurs Pay Themselves
Anita Sharpe on Business
You might think that people who write their own paychecks would jump at the opportunity to reward themselves handsomely. In fact, that rarely happens.
This is typical and it seems smart. But is it?
A story in today's New York Times quotes a couple of financial counselors who advise entrepreneurs to determine a fair pay package for themselves and book it as an account payable even if the company can't or doesn't want to pay it now. The argument is that this more accurately reflects the true cost of running the business -- and that the people who are making the tough decisions should be 'compensated well.'
That still doesn't feel right to me, at least in the early stages of building a business. Anyone disagree?