Short answer
Pay yourself from profit, not from sales, and start with a fixed amount you can afford even in a slow month. A common approach is to take a set share of each month's profit, often around half, and leave the rest in the business for stock, emergencies, and growth. Pay yourself on a regular schedule so personal spending doesn't drain the business.
Many small business owners either never pay themselves or take money whenever they need it. Both cause problems, and a simple rule fixes both.
Pay yourself from profit, not sales
Sales money isn't all yours; part of it has to restock and run the business. Only profit is available to pay you.
A simple method
- Work out your average monthly profit over the last three months.
- Decide what share to take. Many owners take about half and leave the rest in the business.
- Pay that amount to yourself on the same day each month or each week.
For example, if your average monthly profit is ₦180,000, paying yourself ₦90,000 leaves ₦90,000 in the business.
Keep a buffer in the business
Leaving part of the profit behind means you can restock, survive a slow month, and grow without borrowing.
Adjust as you go
If profit rises steadily, raise your pay. If it falls, lower your pay before the business runs dry. Review every few months.
If you have partners
Agree in writing how profit will be shared before the money comes in. It prevents arguments later.
Doing this in Gripd
Gripd shows each hustle's profit, so you know what's available to pay yourself. On the Basic and Pro plans, Split profit lets you set named percentage shares, like yourself, a partner, or savings, and keeps a record of every payout.
Last updated 29 Sept 2026
Related questions
How do I calculate profit for my small business?
Profit equals your total income minus your total costs for the same period. To get your profit margin, divide profit by income and multiply by 100. For example, ₦500,000 in sales with ₦350,000 in costs gives ₦150,000 profit and a 30% margin.
Read the full answerHow do I know if my side hustle is profitable?
Your side hustle is profitable if the money it brings in is more than everything it costs, including stock, transport, data, fees, and tools. Add up one full month of income and one full month of costs for that hustle alone; if income minus costs is positive, it's profitable. Then divide the profit by the hours you spent to see if it's worth your time.
Read the full answerHow do I know which side hustle is making me the most money?
Track each side hustle's income and expenses separately for at least one full month, then compare their profits, not their sales. The hustle with the highest profit, and ideally the highest profit per hour, is the one making you the most money. The busiest hustle often isn't the most profitable one.
Read the full answerHow do I separate business and personal money?
Give your business money its own home, ideally a separate account or wallet, and pay all business income into it and all business costs out of it. When you need money for personal use, move a set amount across as a deliberate payment to yourself. Even without a second account, recording business and personal money separately keeps the two from blurring.
Read the full answerTrack it all in one place
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