What if the business genuinely cannot afford it yet?

Then say so out loud, put a date on it, and track it. A temporary decision with a review date is different from a permanent one you never made deliberately.

That depends on your structure and jurisdiction and it materially affects tax — an accountant, not a rule of thumb, and not something to copy from another owner.

Is it wrong to pay myself well?

No. You are doing the work and carrying the risk. What is worth examining is whether everyone else is paid fairly too, not whether you are paid at all.

← Answers

How much should I pay myself?

Enough that your household is not quietly subsidising the business. Owners routinely underpay themselves, call it sacrifice, and end up with a company that only appears profitable because its most expensive worker is free. That is not stewardship — it is a cost you have hidden from yourself.

An unpaid owner makes the numbers lie

If you work on the jobs and take nothing, every job looks more profitable than it is. Price the work as though you had to hire someone to do your part, because one day you will, and the price will not magically rise to meet it.

The household is a real stakeholder

A business funded by a marriage under strain, savings that do not get replaced, or a partner covering the mortgage is carrying a debt that never appears on any statement. It is still owed, and it usually comes due at the worst moment.

Underpaying yourself is not humility

It is often fear — that the business cannot afford you, and that finding out would force a decision. Finding out is the point. An owner who cannot pay himself properly has a pricing problem, and no amount of personal frugality fixes it.

What to actually do

Set a figure that covers your household honestly, pay it consistently, and let the business be measured against it. If it cannot carry that number, you have learned something true and early rather than false and late.

Also asked

What if the business genuinely cannot afford it yet?: Then say so out loud, put a date on it, and track it. A temporary decision with a review date is different from a permanent one you never made deliberately.
Salary or dividends?: That depends on your structure and jurisdiction and it materially affects tax — an accountant, not a rule of thumb, and not something to copy from another owner.
Is it wrong to pay myself well?: No. You are doing the work and carrying the risk. What is worth examining is whether everyone else is paid fairly too, not whether you are paid at all.

Written for your trade

This is the kind of thing Solomon works through with owners using their own numbers. See how it works →