If you’re not paying yourself in your business, you’re probably wishing there was more money available for you.
You work so hard, but secretly wonder if you’re faking it as a business owner because you’re not bringing anything home to show for your efforts. You may even wonder if there’s something wrong with you. Am I right?
I have a few ideas for you to expand your thinking and your bank account. Are you open to them? If so, read on. You’ll be surprised that by taking small actions you’ll see your business grow in big ways.
Show me the money, honey
Let’s not beat around the bush here: Being in business means you’re interested in making money. (It can also mean you’ve got a whole lotta love to share in your products and services, but money is the defining factor between building a business versus building a hobby.) Hobbies don’t pay you. Business does.
Why invest your valuable ideas, effort, and creative energy without getting something in return? Wanting to be compensated is not selfish. It’s actually loving yourself enough to recognize what your ideas, effort, and creative energy are worth.
Keep in mind, you wonderful entrepreneur, you’re also giving up TIME with your family to build your business. Your time MUST be worth it, so that when you’re with your kids, you can use the rewards of time you spent working to keep food on the table, lights on in the kitchen, and even chat during your well-lit dinner about that beach vacation you’ve planned, thanks to the money your business has brought in.
Why entrepreneurs don’t pay themselves
The reason you’re likely not paying yourself is fear of not having enough in your business. Maybe you’ve been told that sacrifice is the only way to make it as a startup. Maybe someone advised you to wait until you have a certain amount in your business bank account--and then it’s safe to pay yourself. Any of these sound familiar?
Fear of scarcity and limiting beliefs around money are a very real thing. Holding on tight to every dollar and cent that comes into your business might seem like the logical thing to do, especially according to an accountant, but it can actually do damage to your mental power and how you see yourself as a business owner.
The fearful action of not allowing yourself to be paid is the opposite of abundance mentality, or the belief that there will always be enough. And the truth is, when we allow ourselves to receive, we open the door to receiving more.
Do other founders pay themselves in the lean, early years?
While I can’t speak for all the Silicon Valley wizards out there, I do have a mentor who shared with me the details behind his seriously successful entrepreneur story. I wrote his biography and learned about how he approached his own compensation wisely and with a long-term vision in mind.
The outsourced marketing and sales company he started grew slowly, despite his valiant efforts to scale. It took time, persistence, and conservative protection of funds. In the first two years he only took home $5,000 to support his wife and six kids. They lived on food storage and hand-me-down clothes. But you know what? He had a vision, and grew that company to be $200-million+ revenue business with thousands of employees around the world, still thriving 30 years after he started it.
Let’s break this down: The first years were rough. Really rough. He hardly took home anything. His family didn’t make much to live on. But he did take SOMETHING home! And that something grew and grew, until it was much more than where he started.
Why you need to pay yourself, starting TODAY
Whether you have a desperate need for funds in your family finances or you can hold out for years, you need to be compensated for the work you’re doing in business.
There’s something really important that happens in your head when you pay yourself. By cashing in that paycheck, you are declaring in a physical way:
I am a real business owner
I am making money
I value my time
I am rewarded for the efforts I’m making
I welcome money into my life and invite more!
These messages are really, really important because they empower you to make MORE money. The truth is business is mostly a mental game, and paying yourself is one way to increase your capacity to attract more of what you want.
So whether you feel comfortable paying yourself $25 a month or $2,500 a month, I invite you to set up a recurring payment through your bank. Right now! Go do it. (Done? Good. That was fast.) Within the next six months, mark my words, you will start seeing more money flow into your business. Then it will be time to give yourself a raise!
Want to make more money in less time? I’d love to help you. My passion is passing forward what I’ve learned in my six-figure business to other mom entrepreneurs. Reach out to me for 1:1 PowerStep Sessions™ here and I’ll help you take power steps towards your business dreams in ways that fit your family.