Many home-based businesses operate on a very tight cash flow model with the owners plowing the profits right back into the business to help it grow. That doesn't mean, however, that you shouldn't pay yourself, too. Psychologically, it's important to feel that the business is providing you with an income.

If you're a sole proprietor or partner, you don't write yourself a paycheck to take money out of the business. Instead, the check or withdrawal is known as an owner's draw (sometimes referred to as a payout of retained equity). The owner's draw is not a business expense that appears on your profit and loss statement; instead, it's reflected on your balance sheet.

In a case where the business is also your livelihood, you should make regular draws, perhaps twice a month, to ensure that you can pay your personal bills on time. However, even if you don't need the income to pay your personal living expenses, it can be a good idea to make a small, regular owner's draw, perhaps monthly. You might decide to put the money back into the business at a later date, but in the meantime, you'll feel the satisfaction that comes with getting paid on a regular basis.