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Managing Finances – Startup Serial #13

Managing Finances In Gleem

When I started Gleem, I did it with a very small budget. I also opted to not pay myself, because I’d prefer to hire someone and grow the business further. I do however pay myself a salary, but this takes the form of a director’s loan that increases in size each month.

This was the stance I decided to take. My outlook was that some sacrifice now would pay off in the long run with a larger business.

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This has been going on for about 18 months now. I have been resourceful in keeping my living costs low, however have struggled at times. Going out and doing things can be really tough if you are living in an overdraft…so I began to transfer small amounts to myself to fund my out-of-work lifestyle, not to the value of my salary, but enough to keep me hovering around the £0 mark.

However the first time I did this it was like turning on a tap: I had the ability to go out again!

I had taken a long term loan from my family and was now spending a portion of this, on the company card.

Initially I didn’t see the issue with this, as when I put beers with potential and current customers through on our books as 100% business it felt fine, but over a few months I realised how it could be deemed inappropriate.

Nowadays I transfer a small salary to myself, enabling me to enjoy my time with my girlfriend and friends, but avoiding taking money out of the company account.

This is the best way for me, as although I own 100% of the business, it felt like it broke a weird line between what is a work cost and what isn’t, and the sooner I made a distinction between the two, I felt much more at ease.

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