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Business and operations

Paying yourself is not the same as taking from the business

I have done this more than once.

By Vilbert Gústafsson

Money comes in.

And you immediately see what you could do with it.

Hire.

Build.

Market.

Buy equipment.

Expand.

There is always something the business could do with the money.

What I have been thinking about more is why the owner sometimes ends up last in line.

Everything is supposed to go back in.

Again and again.

Perhaps that makes sense for a while.

But if one of the reasons for building a business is to create financial security, then surely some of that value eventually needs to leave the business and become something else.

A reserve.

An asset.

An investment.

Something that does not depend on the same business.

Otherwise, the eggs are still in one basket, however large that basket has become.

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