How to Pay Yourself as a Business Owner (Simple Guide for Nigerians)
Most small business owners in Nigeria make one big mistake:
They don’t pay themselves.
They just spend money from the business any time they need something.
This is the fastest way to:
❌ Kill your business
❌ Confuse your records
❌ Never know your true profit
❌ Run into debts
Today, you will learn a simple, practical method to pay yourself correctly . whether you run a shop, POS, salon, food business, tailoring, or online store.
✅ WHY YOU MUST PAY YOURSELF
1. It helps you know if your business is profitable
2. It prevents you from spending business money carelessly
3. It helps you plan your life properly
4. It makes your business look professional
5. It makes savings and investment easier
Even if your business is small, take this seriously.
✅ RULE 1: SEPARATE YOUR MONEY FROM BUSINESS MONEY
Before you can pay yourself, you MUST separate:
✔ Business Account
✔ Personal Account
You can use:
Opay
Moniepoint
Kuda
Your normal bank account
Just ensure business money stays alone.
✅ RULE 2: CALCULATE YOUR TRUE PROFIT
You cannot pay yourself from “sales”.
Sales ≠ Profit.
Profit = Sales – Expenses – Cost of Goods – Debt – Purchases
Example for a provision shop (ABC Limited):
Sales: ₦200,000
Cost of Items Bought: ₦120,000
Expenses (fuel, transport, data): ₦20,000
Profit = ₦200,000 – ₦120,000 – ₦20,000 = ₦60,000
This ₦60,000 is the money available to pay yourself.
✅ RULE 3: HOW MUCH SHOULD YOU PAY YOURSELF?
Use this simple formula:
Pay Yourself = 30% of Monthly Profit
Example:
Profit for the month = ₦60,000
Salary = 30% × 60,000 = ₦18,000
Your salary is ₦18,000, not the full 60k.
The remaining money is for:
✔ Restocking
✔ Emergency
✔ Business growth
✅ RULE 4: YOUR SALARY MUST BE FIXED
Choose one:
✔ Weekly
✔ Bi-weekly (every 2 weeks)
✔ Monthly
Example salary structure:
> ABC Limited – Business Owner Salary
> Salary: ₦18,000
> Pay date: 25th of every month
> Withdrawal account: Personal account
This discipline will transform your finances.
✅ RULE 5: IF SALES ARE LOW, DON’T TOUCH BUSINESS MONEY
If your business made low sales this month:
❌ Reduce your salary
❌ Or don’t take salary at all
It is better to skip your salary
Than to destroy the business capital.
✅ RULE 6: WHEN BUSINESS GROWS, INCREASE YOUR SALARY
Once your profit increases consistently for 3 months, you can increase salary.
Example:
Month 1 profit: ₦60,000
Month 2 profit: ₦80,000
Month 3 profit: ₦95,000
New salary:
30% × 95,000 = ₦28,500
⚠️ BIG WARNING:
Never pay yourself from:
❌ Loan money
❌ Money meant for stock
❌ Customer deposits
❌ Money you haven’t earned
🧠 EXPERT TIP:
Use the Xepha Finance Planner to track:
✔ Sales
✔ Expenses
✔ Profit
✔ Salary
✔ Savings
This will make your business organised and profitable.
🔗 CALL TO ACTION
Download the Xepha Finance Planner (UK & Nigeria Edition)
To manage your money like a professional.
📩 [info@xephaglobal.com]
🌍 [www.xephaglobal.com](http://www.xephaglobal.com)
💬 WhatsApp: +234 805 301 2350
