Breaking Bad Habits: Why Paying Yourself Matters in Business
When you're in the early stages of your business, the question of whether to pay yourself may seem daunting. Here's the truth: you should always pay yourself. Even when the bank account is slow, and especially when revenue is low. Neglecting to pay yourself can set a detrimental precedent, sending a subconscious message that your worth is secondary to every other expense in your business. In this guide, we'll explore the importance of prioritizing your own compensation, the pitfalls of the "I'll pay myself later" mentality, and actionable steps to ensure you pay yourself, no matter the financial circumstances.
The Subtle Danger of Delayed Compensation
Delaying your own compensation can create a harmful belief system that persists even as your business grows. We often see businesses raking in millions while founders neglect to pay themselves. It becomes a habit, a mindset that's challenging to break. Whether your business is in its infancy or making substantial revenue, paying yourself is a critical practice to instill early on.
Embracing the "Profit First" Mentality
A recommended read for every entrepreneur is "Profit First" by Mike Michalowicz. This book dives into the core idea that your profits should pay you first. Your business should work for you, not the other way around. By adopting the principles of "Profit First," you'll gain insights into reshaping your financial habits and ensuring that your compensation is a non-negotiable priority.
Breaking the Cycle: Pay Yourself, Even If It's a Dollar
No matter how tight finances may be, make it a rule to pay yourself first. Even if it's just a symbolic dollar, this practice sets a foundation for healthy financial habits. When you prioritize your compensation, you signal to yourself that you matter as much as every other aspect of your business. It's a habit that will serve you well, preventing burnout and maintaining a sustainable approach as your business scales.
Avoiding Burnout: The Long-Term Impact of Prioritizing Yourself
Putting your needs at the forefront isn't selfish; it's a strategic move to safeguard your mental and financial well-being. As you embark on your entrepreneurial journey, building the habit of paying yourself first is an investment in your longevity. It ensures that as your business thrives, so do you.
In conclusion, paying yourself isn't just a financial transaction; it's a mindset shift that can make or break your entrepreneurial journey. By adopting the philosophy of "Profit First" and making your compensation a non-negotiable priority, you set the stage for a sustainable and rewarding business experience.