How Much Should You Pay Yourself at the Start?
When starting a business, income can be unpredictable with good and bad months. Setting a high salary too early can create pressure on cash flow and increase tax and super obligations.
A common approach is to start with a lower base wage to keep expenses manageable. This reduces compliance costs and avoids the need to constantly adjust your salary.
As the business stabilises, you can increase your income through bonuses or dividends based on performance. This provides flexibility while protecting cash flow in the early stages.
