Why Business Owners Don’t Put Themselves First Financially (and the Pop-Psychology Behind It).
Posted: March 5, 2025
By Matt Liddle
Ever feel like you’re the last to get paid in your own business?
It’s not just a cash flow issue—it’s a mindset issue.
I’ve seen this regularly over 20 years working with private business owners.
Here’s what’s really causing the issue:
Which one is getting the better of you?
1. The “Servant Leader” Mindset
As business owners, they often feel responsible for everyone else’s well-being first—employees, suppliers, clients—before even thinking about themselves.
The belief? “If they’re taken care of, the business will thrive.”
The Problem → You keep sacrificing your own financial stability to protect others, but at what cost?
2. Fear of Letting Others Down
Nobody wants to be the owner who can’t make payroll or struggles to pay suppliers.
So, we prioritise those payments over our own salary, believing it’s the “right” thing to do.
The Problem → This fear creates an unsustainable cycle where your own financial needs always come last.
3. The “Reinvest Everything” Trap
There’s a common belief that all profits should go back into the business to fuel growth.
But here’s the kicker—if you’re not paying yourself, you’re actually working for free.
Of course, if your strategy is to go for the big business sale and payday—I can see why this might be a sacrifice you’re willing to make.
However, for the majority, there are general living costs, mortgages and family needs that need to be covered.
The Problem → If your business can’t afford to pay you, is it really a successful business providing time, mind and financial freedom?
4. Identity Tied to Business Success
For many business owners, success is measured by how big the business is, not how much they personally earn.
So, they prioritise reinvestment and expansion over financial security.
The Problem → You can build a million-dollar business but still have a life where you live week to week financially.
5. The Scarcity Mindset
Some business owners operate in constant survival mode, fearing there’s never “enough” to justify paying themselves.
Instead, they stockpile cash or cover other expenses first.
The Problem → Scarcity thinking makes you reactive instead of strategic, keeping you stuck in a cycle of financial stress.
6. Guilt Around Taking Money Out
There’s often an unspoken guilt about paying yourself—like you’re taking from the business instead of growing it.
The Problem → If you’re not getting paid, your business is just an expensive job.
Here is an Example
To better explain how it can feel for business owners, meet Bob and James—two business owners in the same industry, with the same revenue and expenses. But one thrives financially while the other constantly feels stressed and undervalued as the owner.
Name: Bob
Revenue: $5,000,000 per year
How he handles money:
- Pays employees first, even giving raises before increasing his own salary.
- Pays suppliers and contractors quickly to maintain good relationships.
- Waits 30–60 days for clients to pay him but still covers business expenses immediately.
- Reinvests every dollar back into the business but never takes a proper salary.
End Result:
On paper, Bob’s business is “successful,” but he barely takes home any money.
He’s stressed, overworked, and wondering why he’s not financially secure despite running a 5-million-dollar company.
Name: James
Revenue: $5,000,000 per year (same as Bob)
How he handles money:
- Pays himself first as a non-negotiable business expense.
- Matches supplier payment terms with client payment terms (e.g., 30 days vs. 30 days).
- Implements upfront deposits and shortens payment cycles.
- Speaks to clients about the value of their work, adjusts pricing to cover his salary and maintains strong margins.
End Result:
James is financially comfortable and stable. He pays himself a proper salary, has a predictable cash flow, and isn’t stressed about money—even though his business earns the same as Bob’s.
Pick the one that will have the most impact and make the changes today!
How to Shift the Mindset & Start Paying Yourself First
- Reframe Paying Yourself as a Business Expense → Just like rent, payroll, and suppliers, your financial needs should be non-negotiable.
- Stop Equating Business Growth with Personal Sacrifice → A healthy business pays its owner.
- Challenge the Fear of Not Having Enough → The more structured the way you pay yourself is, the more financial stability and certainty you create for you and your family.
- Put Yourself on Payroll or Have a Fixed Drawing → Automate a transfer like any other bill—this forces you to make it a priority.