The Undeniable Importance of Owner's Pay
In this episode, we explore one of the most overlooked but essential principles of running a financially healthy business—paying yourself properly as the business owner.
I’m Deb, a Profit First Professional, and I’m here to challenge the harmful belief that you should sacrifice your own pay in order to grow your business. Failing to prioritise your own income leads to burnout, resentment, and in many cases, the breakdown of the business itself.
We’ll walk through how to calculate your ideal owner’s pay based on your personal needs and goals, and how to make it a non-negotiable part of your financial strategy. You’ll also hear the inspiring story of Steve, a bathroom fitter who went from surviving to thriving after implementing the Profit First approach and paying himself first.
By the end of this episode, you’ll be empowered to see your pay not as a luxury—but as a responsibility to both yourself and your business.
About the Podcast:
Too many entrepreneurs hustle for revenue while neglecting their own financial wellbeing. In this episode of the Financially Healthy Business Podcast, I shine a light on the silent struggle of not paying yourself enough—or at all—and the toll it takes on your health, motivation, and long-term success.
We talk about real numbers, personal clarity, and how to restructure your finances so that your pay becomes a fixed part of the business model, not an afterthought. Using the Profit First method, I’ll show you how to allocate a specific percentage of income to your owner’s pay, creating a system that funds both your business and your lifestyle.
With every 15–20 minute episode, this podcast offers practical, no-fluff insights to help you move from financial stress to financial confidence. We’re following the roadmap from my book, giving you structure and steps at every stage of your business journey.
You are the most valuable asset in your business. It’s time your finances reflected that.Takeaways:
- Business owners must prioritize paying themselves first to ensure financial health.
- Underpayment can lead to burnout and a detrimental impact on business sustainability.
- Calculating personal financial needs is essential for establishing a realistic owner's pay.
- Integrating owner's pay into pricing structures is crucial to maintaining a healthy business mindset.
- Setting aside a small percentage for owner's pay can shift one's perspective on business success.
- Regularly reassessing and increasing owner's pay fosters a more sustainable business model.
Links referenced in this episode:
Companies mentioned in this episode:
- Accounts Ladies
- Accounts Office Academy
- Profit First
- How to Build a Financially Healthy Business
Transcript
Foreign Healthy Business Podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
Speaker A:I'm Deb Halliday, Profit first, professional, founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business.
Speaker A:Learn how to take control of your finances, reduce stress and grow sustainably because your business should support your life, not consume it.
Speaker A:Let's get started.
Speaker A:Hello again and welcome to the Financially Healthy Business Podcast.
Speaker A:I'm Deb Halliday, author of how to Build a Financially Healthy Business and this is episode four of our book based miniseries.
Speaker A:Today we're tackling a topic that so many business owners quietly struggle with.
Speaker A:Not paying themselves properly or at all is one of the biggest gaps I see, and it's often what leads to burnout, resentment, or even the collapse of the business entirely.
Speaker A:Let's talk about how to make paying yourself first non negotiable, how to calculate what you really need, and how to build your owner's pay into your pricing and financial structure from today.
Speaker A:The problem?
Speaker A:You Can't Be last Let me ask you a question.
Speaker A:Are you the hardest working person in your business and also the one who gets paid last or not at all?
Speaker A:If so, you're not alone.
Speaker A:Most business owners fall into this trap, especially in the early years.
Speaker A:Here's the thinking I'll just reinvest everything for now.
Speaker A:I'll pay myself later once I hit that next revenue goal.
Speaker A:But here's the you are the most important person in your business.
Speaker A:If you're underpaid, overstretched or financially stressed, you can't grow and your business becomes a burden, not a vehicle for freedom.
Speaker A:You didn't start your business to be broke.
Speaker A:You started it to support your life.
Speaker A:So we need to flip the script and pay you first.
Speaker A:Case Study Steve's Owners Pay Breakthrough Let me tell you about Steve.
Speaker A:Steve ran a successful bathroom fitting business with excellent reviews and plenty of work.
Speaker A:But he wasn't paying himself regularly.
Speaker A:He was living off credit cards while his business bank account looked busy.
Speaker A:When we met, he felt stuck, like he was working hard but going nowhere.
Speaker A:So we helped Steve implement profit first and more importantly, set aside a fixed percentage of revenue for owners pay.
Speaker A:The result?
Speaker A:He started paying himself every month.
Speaker A:He was able to support his family without stress.
Speaker A:He finally felt like his business was working for him and you can do the same.
Speaker A:The Owner's Pay Calculation let's walk through how you can work out your owner's pay realistically and intentionally.
Speaker A:Step one.
Speaker A:Work out your personal essentials.
Speaker A:Look at your personal bank statements.
Speaker A:Add up rent or mortgage, utilities, food, car costs, kids, school and household expenses, any regular commitments.
Speaker A:That's your minimum.
Speaker A:Baseline is what your business needs to fund before we talk about growth.
Speaker A:Step two Factor in dreams, goals and retirement.
Speaker A:Now look ahead.
Speaker A:Do you want holidays, A house deposit, Private health care?
Speaker A:A pension or investment pot?
Speaker A:This is about building a business that supports your actual life, not just gets by.
Speaker A:Add those goals to your owner's pay figure.
Speaker A:Step 3 Build it into your profit first percentages.
Speaker A:Once you know the number, work backwards.
Speaker A:How much revenue do you need to consistently take that pay?
Speaker A:Can you increase your prices or reduce operating expenses to create space for it?
Speaker A:Owner's pay is not a leftover.
Speaker A:It's a planned, intentional, non negotiable part of a healthy business mindset.
Speaker A:Shift.
Speaker A:You are not a charity.
Speaker A:Let's get honest for a second.
Speaker A:If you had an employee who showed up early, stayed late, juggled every role in the business and never got paid, you'd call that unsustainable or exploitation or illegal.
Speaker A:But when you do it, you justify it as just part of growing a business.
Speaker A:Let's be clear, you are not your business's investor.
Speaker A:You are its most valuable asset.
Speaker A:If you don't pay yourself, you undervalue your work, you make poor decisions from a place of fear, and you quietly set a precedent that you don't matter.
Speaker A:Paying yourself first isn't selfish.
Speaker A:It's essential Quick wins to start paying yourself.
Speaker A:You might be thinking, but I can't afford to pay myself right now.
Speaker A:You can, even if it's just a token.
Speaker A:To start, try this.
Speaker A:Start with 1% of all income as owners pay.
Speaker A:Set up a separate bank pot labeled My pay every week or fortnight.
Speaker A:Move that percentage into it religiously increase it every quarter as you optimize other areas of your finances.
Speaker A:It's not about perfection.
Speaker A:It's about consistency and intention.
Speaker A:And once you see that pot growing, even if slowly, it will shift how you show up in your business.
Speaker A:So here's your challenge.
Speaker A:Sit down this week and calculate your real personal needs.
Speaker A:Set your owner's pay percentage, even if it's just 1%.
Speaker A:Make your pay a non negotiable part of your business structure.
Speaker A:And if you haven't yet, grab your copy of the book.
Speaker A:It walks you through this entire system, step by step.
Speaker A:Www.howtobuildafinanciallyhealthybusiness.co.uk Next episode we're talking about debt.
Speaker A:How to get out of it faster and how to stop carrying it like a secret burden.
Speaker A:Until then, I'm Deb Halliday.
Speaker A:Thanks for joining me.
Speaker A:You are worth being paid well.
Speaker A:Let's make that your new normal.
Speaker A:Thanks for tuning in to the Financially Healthy Business podcast.
Speaker A:If today's episode helped you take a step closer to building a business that supports your life, share it with a fellow business owner, follow the show or leave a review.
Speaker A:It all helps to get the message to the people that need it.
Speaker A:Head to how to Build a financially healthy business.co.uk and explore the tools, resources and online programs.
Speaker A:You didn't start your business just to survive, you started it to thrive.
