Paying Yourself - A Very Honest Conversation
This is a topic that isn’t openly discussed among founders, but it absolutely needs to be. Let’s lift the lid on it.
Why is this important?
There are two key reasons why this conversation matters:
It’s damaging within the founder community – Feelings of inadequacy, self-doubt, and comparison are all too common. You might feel like you're not enough, you don't know enough, or you're not capable of doing this. The comparison trap is real, especially when you're looking at other businesses or founders on social media. But what we see online is far from the truth, and it’s easy to forget that.
It misleads new business owners – If you’re just starting out or you’re new to the business world, the silence around this topic gives you the wrong impression. You might think that paying yourself from day one is the norm, when in reality, it’s not.
So, why don’t people talk about it?
I’m not saying it’s something your brand should broadcast publicly. (Please don’t do that!) But even among peers, this topic is rarely discussed. The reasons? Shame, embarrassment, and the pressure to maintain an image. The list goes on.
Here’s the truth…
Most founders don’t pay themselves for the first 3 years. Yes, you read that right. The average founder can’t take a paycheck until at least three years into the business.
Why is this the case?
In the early stages, your business needs investment. The most crucial investment is "buying" customers. Whether you’re spending on ads or reinvesting revenue into other areas, the goal in those early days is clear: get customers. Because without customers, you don’t have a business. Period.
So here’s the tough reality...
When you start a business and you need to draw money from day one, it creates a tricky situation. I often ask clients: "Do you need the money right away?" I don’t ask to be rude, but because it matters. If I could give one piece of advice for the first couple of years, it would be to not pay yourself if you don’t absolutely need to. I know that sounds extreme, but if you have ambitious goals to scale, your business needs that cashflow more than you do.
This isn't something many people want to admit. The truth is, building a business that pays you a sustainable income takes time. It’s not about quitting your job one day and matching your old salary within a year. That’s rare. And if it does happen, it’s often the exception, not the rule.
Let’s get real...
In the founder world, we’re generally honest about the highs and lows, but we’re not always as candid when it comes to finances. And the truth is, it’s hugely important to have this conversation. When founders don’t discuss the financial realities of building a business, it can lead to a variety of problems:
Financial pressures at home – Stress can pile up when the bills are due and there’s no consistent income.
Feelings of inadequacy – You might feel like you’re failing simply because you’re not paying yourself what you think you should be.
Erosion of self-belief – Doubts creep in when reality doesn’t match your expectations.
Why does this happen? Because you’re holding yourself to a false standard, often based on how others appear to be doing. The reality is that most founders are struggling with the exact same issues behind the scenes.
This lack of conversation around paying yourself contributes to why so many founders feel like they’re failing. Combine that with not knowing how to scale your business, and it’s a recipe for burnout.
Well-known Founders Who Kept Their Day Jobs
There’s a common myth that successful entrepreneurs quit their jobs and made it big immediately. But in reality, many well-known founders worked regular jobs while they built their businesses.
Here are a few examples:
Ben Francis – Gymshark: Ben Francis was working as a pizza delivery driver while he built the Gymshark brand. He juggled his job alongside his passion project until Gymshark gained enough traction to support him financially.
Sara Blakely – Spanx: Sara Blakely worked selling fax machines door-to-door while developing Spanx. She would pitch Spanx to potential investors after work, often sacrificing sleep and weekends to get her business off the ground.
Kevin Plank – Under Armour: Kevin Plank launched Under Armour while still working as a college football player and selling flowers to fund his side project. He didn’t dive into the business full-time until it was financially viable.
Phil Knight – Nike: Before Nike became a household name, Phil Knight worked as an accountant and sold shoes out of the trunk of his car. His financial stability from his day job allowed him to keep investing in Nike until it took off.
These examples show that you don’t have to quit your job right away to build a successful business. In fact, keeping a stable income can give you the freedom to reinvest into your venture without the pressure of having to draw a paycheck too soon.
The Long Game
Building a business that supports you financially is a long-term endeavour. It’s not about how fast you can pay yourself, but about setting up a sustainable, scalable operation that will pay dividends down the road.
If you’re in the early stages of your business, give yourself grace. The journey might be slower than you anticipated, but that doesn’t mean you’re failing. The key is to be strategic with your finances, avoid unnecessary pressure, and stay focused on growth.
Conclusion
Let’s normalise conversations about paying yourself as a founder. It’s not shameful to admit that you can’t yet take a salary from your business. In fact, being transparent about the financial realities of entrepreneurship could help more people build stronger, more resilient companies. So, let’s talk about it – and support each other in the process.