Pay Yourself a Salary

Sole proprietors sometimes leave stable employment with predictable salaries to become their boss. It’s tempting for the new to reinvest 100% of all available capital into the fledgling business. Don’t. Pay yourself like a barista!

Draw a salary to satisfy basic financial needs. Doing so will ultimately be far for the owner and the business.

Owners must make business decisions in the best interest of the business. This can be difficult to do under the stress of immediate personal financial concerns. Deciding to resolve immediate needs may sacrifice opportunities for the future. Having a clear head can help to avoid damaging financial mistakes.

Although the statement may seem unnecessary at first glance, the coffee shop may be yours, but it is not you. The distinction can be lost when working under extreme stress for long hours to pursue a goal. It is only an investment, so treat it like one.

Every retail coffee shop should be established as its legal entity separate and distinct from you.

Have fun with your coffee shop. Design, manage, and personalize, but keep your identity. Paying yourself a barista’s salary is one way to help maintain independence.

To reference what may be reasonable today, check out this barista pay spreadsheet anonymously crowdsourced among the barista community of New York.