Pay Yourself First

Written By: Jonathan Monson from Dirty2Dreamy, a Detailed Image Ask-a-Pro Detailer Author

Paying yourself first seems to be a foreign concept in the detailing industry. This is a very grave error on the part of an owner. You absolutely must get yourself on the payroll if you ever expect to scale your hobby into a profitable organization. You have a much better understanding of the company profits when you pay yourself. Here are three things to keep in mind when it comes to your pay. 

The first thing you need to realize is that you are not running a charity. You can drastically change your mindset, pricing, and target client by putting yourself on the payroll. You will very quickly learn if you are charging enough if you cut yourself regular paychecks. If the money left over isn't enough to run the business, something must change. 

The second thing you will realize is that adding staff becomes an easier decision. When you pay yourself and end up with a surplus, it is an easy decision to add new team members. The goal should be to get to this position so that you no longer own a job, but a financial asset. 

The third and last thing you will realize when paying yourself is that efficiency trumps everything. You will quickly learn your cost of labor and what that labor will produce. This lends itself to deciding to add staff easier. You can see more clearly that X amount of labor makes you X amount of money. So, in theory, you can add additional labor and predict what that investment will produce in additional revenue. 

My final thought on this subject is that paying yourself is a matter of self-respect. You wouldn't work for someone for free with the hopes of achieving greatness someday. Why are you working for yourself for free? Be better! 

*This educational article was provided by Detailed Image, an IDA Diamond Sponsor. It does not constitute an endorsement, guarantee, warranty, or recommendation by the IDA. The IDA makes no representation or warranties about any information contained herein.