Pay Yourself More Later (When the Business Can Afford It)
This is a simple, reasonable, common-sense solution.
- Flexible for the business. The business pays you more eventually, but not based on any timetable or loan.
- Flexible for you. You leave it open how, when, and how much your compensation grows.
- Shows smart management and long-term commitment. This helps the company survive initially and shows your commitment to its long-term success.
This arrangement might appear too casual and might hurt the business’s image.
- Might look unprofessional or too casual. By not documenting a loan or making things official or having a timetable, this might seem too casual an arrangement.
- Could create questions or raise red flags. If the arrangement seems too loose, unprofessional, or suspicious, it could invite scrutiny from investors or the IRS.
- How flexible can you be personally about finance and compensation?
- How supportive is your spouse or partner – if you have one – in case they need to make any sacrifices?
- How financially solid is your company?