Ryan Deiss argues that a business that can't pay its owner a livable salary is broken. The real sign of a healthy business isn't growth or revenue, but whether it can compensate the owner and stakeholders generously. Set your salary first, then allocate the rest.
I keep hearing about business owners making less than their employees and it's driving me crazy. Look, if your business is brand new, I get it. If you can't afford to pay anybody, you can't afford to pay you, fine. But at some point you have got to pay yourself a salary, a livable one, a good one. Not only is it more motivating for you, it's how you can ensure that you are building a healthy business. If your business cannot afford to pay you, then something is seriously broken in your business. And if the only way your business can be successful is if you don't get paid, Again, that means you've got something broken in the business. So let's start profits first, team. Let's get you paid first and then figure out what your expenses are after that. Because the ultimate sign of a healthy business is not growth. It's not revenue. It's not net promoter score. The ultimate sign of a healthy business is when that business can afford to pay you and the other stakeholders lots and lots of money. So pay yourself well.
