Member-only story
Why Your Startup Isn’t Cashflow Positive Until You Make A Living Wage
You work really hard for years building your company. And you’re burning through your savings as you build your company.
Finally, finally you get your company to cash flow positive.
“Thank goodness,” you say to yourself. “We’re finally free of needing more money.
“Now, the business is self-sustaining. We can just invest the profits of the business back into the company.”
So it’s a rude shock when you realize that your company isn’t truly profitable even though your company is cash flow positive.
How can this be? Cash flow positive means you don’t need money any more, right?
Let me tell you about my friend Mark.
I met Mark a couple of years ago. He has a really cool company that he and his business partner started. They received some angel funding that helped them, but they are truly bootstrapping.
I love their business and their business model. Their product is unique. And, slowly but surely, Mark’s company has gained traction.
I tell Mark the same thing every time I see him. “When are you and your partner going start taking a salary?”
