“How do I pay myself… responsibly?”
This is one of the most common questions I hear as a CFO. That’s because, for many business owners, figuring out how much to pay themselves can feel—at best—like an impossible balancing act, and at worst, downright selfish. You’re so used to reinvesting in the business, covering everyone else’s needs, and bracing for whatever’s around the corner that taking money for yourself feels too indulgent … or too risky.
But honestly, it’s neither of those things. It’s smart, it’s sustainable, and it’s necessary.
Why Your Salary Isn’t Just About What’s Left Over
Far too many small business owners fall into the same trap—they pay themselves last. You’ve probably been there—after covering payroll, vendor bills, software subscriptions, and whatever unexpected expense popped up that month, you check your bank balance and think, “Okay, now what can I take home?”
If that’s how you’ve been doing it, you’re not alone. But it’s not sustainable. It’s a reactive approach that puts your livelihood at the mercy of fluctuating cash flow. One slow month? You’re skipping your own paycheck. That might work for a while, especially in the early days when you’re trying to keep everything afloat. But long term? It creates stress, burnout, and resentment.
Pay Yourself With Intention
A better, healthier strategy is to intentionally build your compensation into your business model from the start. Your salary shouldn’t be an afterthought—it should be a non-negotiable line item based on your business’s real financial picture.
The goal isn’t to drain your business dry. It’s to design a business model that supports your life, not just everyone else’s. When you pay yourself reliably, you’re improving your personal finances, but you’re also building a stronger, more resilient company.
Imagine a bakery owner named Carla. She’s been running her shop for three years, and she always told herself, “I’ll pay myself once we’re a little more stable.” In reality, she’s been running a successful business—but because she never planned for her own compensation, she’s constantly feeling broke, even while her business grows.
Once she sat down with a fractional CFO, they reviewed her cost of goods, labor, pricing, and monthly revenue patterns. Turns out, she could have been paying herself a consistent $4,000 per month all along—without jeopardizing her business. They adjusted her budget, set up an owner’s salary, and now she’s finally seeing the personal reward for all her hard work.
Just like Carla, you are not “taking” from your business—you’re being compensated for building it. Paying yourself is not selfish. It’s a sign of a healthy business. And when you’re not clear on what you can or should be taking home, it’s no wonder you second-guess it. That’s why having visibility into your financial drivers—and someone to help you model and plan for your salary—is so important.
Meet Your Financial Drivers
With a CFO’s help, you can use your financial data and plan proactively, so you can create a business that supports you—not just your team, your clients, or your vendors. A CFO will often monitor two key areas when building a strategy that supports both your income and the health of the business:
1. Profit Drivers
These are the levers that move your margins. It might be pricing, cost of goods sold, productivity, or client retention. If profit margins are thin, it’s tough to justify a meaningful paycheck. A CFO helps identify what’s eating into your profits and where to adjust.
2. Cash Flow Drivers
This is about timing. You might be profitable on paper but strapped for cash in reality. Payment cycles, inventory management, and even growth itself can strain cash reserves. Understanding your cash conversion cycle is essential when setting a consistent owner’s draw or salary.
When these drivers are out of alignment, you’ll likely feel it in your wallet—even if your revenue is climbing. But when they are aligned is when the real strategy can begin. We help you answer questions like:
- Should I take a salary or an owner’s draw—or both?
- How much should I set aside for taxes?
- What’s the safest range to pay myself while planning for growth?
- Can the business afford to invest and support my lifestyle?
We use real numbers to build a financial plan that includes you—not just your team, your expenses, or your goals. Because you matter, too. So start treating your own paycheck as essential, not optional. It’s one of the smartest and most sustainable financial moves you can make.
The Bottom Line
Paying yourself isn’t selfish—it’s smart. When done strategically, it signals a healthy business and a confident leader. You deserve a salary that reflects your hard work without putting your business at risk.
Let’s map out a financial strategy that supports both your business and your lifestyle. [Book a consult.]
About Agile Planners
At Agile Planners, we provide strategic guidance and outsourced CFO services to companies of all sizes. We can help provide the strategy your organization needs for the growth you want. We understand that no two organizations are the same. And with our experience and financial knowledge, we can help develop the right strategic plan for your business to grow and reach its goals. Simply, we’ll be your trusted partner, so you can focus on running your organization. Contact us today to learn more about how we can help.
