Why paying yourself is smart, not selfish
I was sat in front of a business owner recently who was proud that he “hadn’t paid himself in almost two years” since starting in order to maximise cash in the business.
Whilst I would always advocate having cash to be able to invest in growth, achieving this at the expense of paying yourself regularly isn’t a great approach.
A dangerous myth in entrepreneurship is that a business owner should sacrifice everything, including a personal income, for the sake of their company.
While it can be worn as a badge of honour, choosing not to pay yourself consistently can actually harm both your business and your well-being in the long run.
The truth is, paying yourself regularly isn’t just about covering your bills and developing a lifestyle, it’s about validating that your business is actually working.
If your business can’t afford to pay you regularly, it’s sending you a strong message: something’s not working. Whether it’s pricing, profitability, or unnecessary expenses, not taking a salary highlights a weakness in your business model that needs to be addressed.
You deserve to be compensated for your time, effort, and leadership – just like any employee would be.
When you take consistent drawings from your business, you’re proving your business can support not just its operations, but also the lifestyle you desire. And let’s be real: wasn’t freedom and financial independence part of why you started this in the first place?
Paying yourself also helps set clearer boundaries between your personal and business finances. It encourages better budgeting, clearer forecasting, and a stronger understanding of your business’s financial health. It tells you, and others, that this isn’t a hobby, it’s a viable, sustainable enterprise.
Often, this vital information is unavailable – either because the accountant doesn’t wish to provide it, you aren’t paying them enough for it to be made available, or you bury your head in a proverbial bucket.
So, let’s stop applauding business owners who proudly say, “I haven’t paid myself…” That’s not sacrifice, it’s unsustainable naivety. You can’t pour from an empty cup, and your business can’t thrive if its most important asset, you, is running on fumes.
So yes, pay yourself what you can, when you can (take advice where and when needed about how and how much etc). Not just when things are good, but consistently. It’s not selfish, it’s smart, it’s strategic, and it’s a powerful signal that your business works – not just in theory, but in real life.
And while we’re busting myths, let’s not forget the long hours narrative. Working 60+ hour weeks isn’t proof of success – it’s a huge red flag. If your business only survives because you’re pouring every waking hour into it, it’s not yet sustainable. You’re not building freedom; you’re building burnout.
A truly healthy business model supports your lifestyle, rather than consuming it.
Working smarter, not longer, is what sets a business owner apart from someone stuck on the treadmill.
Clearly, these two issues are inter-related. You have to earn enough money to invest in systems and team to free up your time spent in the weeds. Doing this as well as paying yourself sufficiently is key. Once you start to build systems and a team to free you up, you can hopefully spend more time working on business growth and it becomes a self-fulfilling prophecy.
I was caught in this trap until I took the leap of faith to invest in a team and have never looked back.
If you are working too many hours and not paying yourself, you are trapped by your business, rather than having the freedom you desire.
What would you have to change in your business if you treated paying yourself as non-negotiable?
If you are looking for a sounding board to help you challenge the status quo or need help developing a plan to help navigate your next steps proactively, it’s time to chat.
