Banker advises business owners to pay themselves salaries

09Sep 2019
The Guardian Reporter
Tabora
The Guardian
Banker advises business owners to pay themselves salaries

Business owners should stop using money from their sales regularly and instead pay themselves a salary to ensure that their business remain independent from their personality.

Some of the business owners and managers who attended the Tabora NMB meeting last week join hands in solidarity with the bank’s managers during the session. Photo: courtesy of NMB.

 

NMB Bank Plc’s Western Zone Manager, Sospeter Magese told Tabora business owners and managers last week that it is counterproductive to use money from daily sales to finance family expenses such as food, electricity and water bills.

“It is strange that a businessman pays workers monthly salaries but as owners and directors don’t pay themselves salaries too but instead pay personal expenses with income from the business regularly,” Magese said.

He urged them to observe good corporate governance rules if they want to grow their businesses instead of running such businesses clandestinely which often leads to collapse of slow pace of growth.

“If you pay yourself a salary and keep records correctly then at the end of the month, you know how much has been made as profit or loss,” he added while urging them to make suggestions to the bank as to which products and services do they need to prosper and graduate into companies.

Chairman of the business group, Ahadi Mviombo challenged his peers to make good use of borrowed loans by investing in growing their businesses so that they repay such loans on time. “If you can spare 5,000/- daily to repay the loan then obviously the issue of defaulting won’t arise,” Mviombo said.

One of the business people, Mwalimu Mambo backed Mviombo’s observation and commended NMB management for regularly training small business owners on basics of financial management which is important in running such businesses profitably.

“Though the bank’s training in financial management basics, we are now keeping records professionally and our businesses are being managed properly,” Mambo noted as the more than 300 business owners and managers who attended the meeting voiced their support through applause.

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