And he added: “Stipulate your Wages to me, and I will give them ” – Genesis 30:28

There is a definite need to getting paid as the creative director/owner/head tailor of a fashion brand. However, getting paid isn’t something that you just come by. You have to strategically plan to ensure both personal and business sustainability. There are a lot of models that exist that are great. I will however be taking care of just one that I am very familiar with. There is some background to it. Let us start with that.

Most important step is defining the fair salary for the role, experience and industry standards. This will also involve assessing the business financial performance and profitability to ensure that compensation is done on a sustainable level. A business making a 100,000-naira monthly profit cannot afford to pay a staff 200,000 naira as this will mean the business will go bankrupt in a few months even with external funding. In cases where the business gets funded by an investor, the business owner/leader will also have to understand that the money (except where it is stated expressly) isn’t for salaries of staff only but more importantly for business growth. The case of a tech company paying its CEO outrageous salaries made the news quite recently. The reason for the outrage was the company went bankrupt in just a few months as the salary was draining the company resources. While the CEO might consider it a personal win, in some cases, it could be criminal to do such. The moral is determining the fair salary of the staff (owner is also a staff) is contingent on the funds available in terms of either profitability or investment for salaries (where such is available).

Next thing to be taken care of is to ensure that all business accounts are kept different. To maintain clarity and organization in your finances, it's crucial to separate personal and business expenses. Open separate bank accounts for business and personal finances to accurately track expenses and ensure compliance with tax regulations. There has to be a regular pay schedule that suits the business cashflow and revenue cycles. Whatever timeline or schedule has been chosen; it is super important to always keep up with it. Consistency makes this work. Prioritize the financial health of your business by ensuring that sufficient funds are available to cover operating expenses, taxes, and other financial obligations before paying yourself a salary. Adjust your compensation accordingly during times of financial strain to support the sustainability of your business.

For earlier stage fashion businesses, it is important to understand that the business revenue might not be sufficient to pay a good sum as a salary. Therefore, the wage of the entrepreneur might be just the wage of artisanship. Let us consider my example: When I was starting out, I was completely bootstrapped and funds were meagre. The payment structure that worked for me was I would deduct the amount that an artisan would change on the job and pay myself that. This meant that it was a numbers game for me. The more money I wanted to make personally, the more money my business had to make. Great incentive for me and the business of you ask me.

Regular monitoring of the business’s financial performance and health can also be a was that an evaluation of salary increases or decreases can be met. Consult with financial professionals, such as accountants or financial advisors, to ensure that your compensation structure aligns with your business goals and complies with tax regulations. Their expertise can provide valuable insights and guidance tailored to your specific financial situation and business needs.

By following these steps and maintaining a disciplined approach to managing your finances, you can ensure that you receive a fair and consistent salary as the owner of a small fashion business. This not only supports your personal financial stability but also contributes to the long-term success and growth of your company.