The Cost of ‘Being the Business’ — Why You Need to Pay Yourself Properly
Let me guess. Your business is thriving. You’ve got staff, client invoices flying in, a strong Instagram presence, and maybe even a ring light. But when someone asks, “How much are you paying yourself?”, you suddenly need to go make a cup of tea.
It’s okay. You’re not alone — loads of founders; Directors; CEO’s, are smashing it publicly and starving privately.
Now, hear me out here: you are not your business. Read it again. You. Are. Not. Your. Business.
🚨 The ‘Reinvest Everything’ Trap
You tell yourself you’re “being smart” by reinvesting all profits. Or that you’ll “sort out pensions & investments later.” Sound familiar?
Except “later” turns into:
No emergency fund
No mortgage application because you’ve only paid yourself £9,000/year for three years
No personal wealth despite your business making six figures
It’s a lovely strategy until you realise you’ve just spent five years building value for a company… and none for yourself.
📉 Real Talk: Your Business is Not a Pension
Here’s what paying yourself properly could look like:
A structured salary (yes, even if it means paying tax — that’s the game)
Pension contributions from the business (deductible, by the way)
Dividends, where appropriate, but not as your only source of income
A business emergency fund and a personal one
Investments held in your own name
Less pressure for that sale figure to be exactly right
🧠 Why This Matters Long-Term
When you treat yourself like an employee — a really important one — you start future-proofing your life.
And no, this doesn’t mean bleeding your business dry. It means recognizing that your future security should be a business priority, not a personal afterthought.
Because if your plan is to scale, sell or step back — and you’ve built nothing on the personal side — what was the point?
Not only that, but you’ve put all your eggs in one basket and what if something catestrophic happened to the business or it didn’t achieve the valuation you expected. You have nothing to fall back on. There’s no wealth diversification. No personal investments. Nothing.
📌 Final Word
You’re the one holding it all together. So why are you the one getting paid last — or not at all?
Paying yourself isn’t greedy. It’s not “taking from the business.” It’s what smart founders do when they realise: the point of being in business is freedom — not martyrdom.
p.s. not advice obvs!
This article would be correct as at the time of writing but as we know; rules and regulations can change. Seek advice before taking any action.