Let’s talk about a delicate subject. Money. Your money. What you make, your own compensation. I know, it’s not polite to talk about politics, sex or money, but I’m tired of seeing tired of seeing women business owners shortchange themselves (literally!).

What do you believe you deserve to be paid? Seriously, what do you think your compensation should be, based on your expertise, wisdom, knowledge and all the blood, sweat, and tears you have put into your business.

Is that what you’re making? If so, you can quit reading right here, because the rest of what I have to say is for the thousands of women business owners who are not paying themselves what they are worth.

Ask yourself, “Would someone buy my business and run it for the same compensation I receive?” If the answer is no, it’s time to make some changes.

I often see women business owners generate enough revenue to hire the people they need, purchase the equipment they need, spend the marketing dollars they need, and simply take what little is left over at the end for themselves. If that’s what you are doing, it’s not a condemnation of you. It’s a clue that something in the business needs to change.

I’m suggesting that if there is not enough to compensate you for what you are truly worth, it’s time to re-examine your business model and face the brutal fact that if your business can’t compensate you, you need to find a business strategy that is more successful.

Of course it is common in the start up phase to take little or no compensation out of the business or to put profits back into the business. But at some point that has to stop. At some point you need to balance the needs of the business with your personal needs.

Looking at what you deserve to earn provides a fast (although sometimes painful) wake-up call that will lead you to make the necessary changes in your business.

So here’s what I want you to do.

• Decide what your compensation should be. This can and should be based on a variety of factors. Here are two articles that can help you determine what makes sense: http://bit.ly/EntrepSalary & http://bit.ly/NFIBcomp.
• Print out your 2010 budget. Okay, I know, you don’t have a budget. Pull up your 2009 income and expense statement and export it to an Excel spreadsheet.
• In the line item that says “Owners Salary” plug in the number you answered above. Doesn’t matter if it’s $24,000 a year or $250,000 a year. Let’s just see what happens.
• Now look at how that affects your bottom line. My guess is that you have a big, negative number under net profits now.

What you have just seen in that big, negative number is the reality of what you need to fix to make your business worth your time and effort.

What needs to change in your business for you to finally begin to earn what you are worth? How does putting your desired compensation into your budget as a legitimate number change the way you think about your business?

It’s only by paying yourself what you are worth that you will have an accurate portrayal of the true costs of running your business. It’s time to ask yourself what you are worth and design a business model that compensates you at the level you deserve.