You Do This for Free? Why a Real Business Pays Its Owner Consistently

What does stability mean to you?

Stability in your business? For you personally?

In my corporate days, stability wasn’t a feeling — it was a system. Every other Friday, the paycheck arrived like clockwork. That predictability gave us the freedom to plan vacations, replace the hot water heater without panic, and make real choices. That’s the part most business owners unknowingly give up when they go out on their own and it’s the part we’re going to rebuild.

The Problem

For most business owners, paychecks are a game of chance. You get paid when the business does well — and you go without when it doesn’t. That means your personal finances rise and fall with every slow client payment, every delayed project, every dip in sales.

You might tell yourself it’s just part of entrepreneurship, but it’s not. It’s not flexibility, it’s instability. When you pay yourself “when there’s enough left over,” you become the buffer. You absorb the stress the business should be built to handle. That’s what makes every decision heavier: every new hire, every investment, even a family vacation. Because deep down, you don’t trust that the money will be there next month.

Now imagine your business runs like every other serious organization. It pays its people predictably, on a schedule. Suddenly you’re making business decisions based on data, guided by your strategy, not the unknown and uncontrollable ebb and flow of your business. You’re calm. You’re running a company, not riding a roller coaster.

That’s what stability actually looks like. Owner pay isn’t a bonus; it’s a business expense. If your business can’t afford to pay its expenses, it’s not a business anymore. It’s a hobby. And the fix isn’t to hope for more revenue; it’s to build a system that is self-sustaining.

How to Structure It

When it comes to figuring out what to pay yourself, don’t overthink it. Base it on a market-rate salary for your role or the minimum needed to sustain your lifestyle. Or, if you’ve taken distributions for years, average them out and start there. Talk to your accountant about tax implications, but there’s no better time to start than now.

If you want to follow a percentage-based payment system you can take whatever revenue you get, put a predetermined % into your Profit account, a % into your Tax account, and another % into your Owner Pay account.

Automate the transfers.

Consistency and building the habit is more important than the number itself, but you should put yourself on a path to a salary that is appropriate for someone in your position.

Pushbacks

What if I don’t make enough to pay myself a regular and appropriate salary?

If your business isn’t making enough to pay you a full salary yet, start smaller, but start. Even $250 per week builds the habit. Let the rhythm provide some stability initially.

What if cash is tight one month?

Last week we talked about Forecasting. If you’ve done this, you likely got signals that a slowdown was coming and had already planned for it. You’ll have already set money aside to cover all of your expenses in case that happened.

I’d rather reinvest everything

It might be worth leaning on the mental framing that your salary is a business expense and not a negotiable one. If you want to reinvest in your company, you don’t ask your employees to just not get paid for the next month or two because you want to “reinvest everything” do you? I sure hope not.

The Shift

When your business pays you consistently, it stops being a lucky accident and starts being a reliable system. Confidence replaces chaos. Your income is no longer based on hope, it’s grounded in the strength of your business.

Next week we’ll talk more about how to build a cash cushion so your business can independently weather the unknown. After all is said and done, you’ll have your steady paycheck and the confidence that brings … a business that’s solvent and independent, and you’re well on your way to the life you imagined when you got started.

One last point: If you’re earning your salary and the business can make a profit distribution, fantastic! That’s your bonus. That’s the reward of a well-run business.

Take Action

If you haven’t done it yet (I understand, you’re busy), this week open a dedicated Owner Pay account. Figure out what % of revenue, or what your biweekly draw will be and set up an automatic transfer. Even if it’s a small number, get it done.

And if you’re still in Stage 1, or Stage 2, that doesn’t mean you can’t think about or engage in Stage 3 best practices. You can, and you should.

Until next week, stay confident and stable.