If you’re applying Profit First and there’s not enough left for Owner’s Pay, you’re not alone. This is one of the most common frustrations I hear from entrepreneurs — especially during tight seasons or cash flow crunches.
Let’s walk through what to do when the numbers don’t seem to work — and how to pay yourself anyway, without sabotaging your business.
Why It Feels Like There’s Not Enough for Owner’s Pay
Maybe your Operating Expenses are too high. Maybe sales dipped. Maybe you’re catching up on debt. Whatever the reason, your Owner’s Pay account looks empty — or worse, you skipped the transfer completely.
This is where many entrepreneurs think, “Profit First doesn’t work for me.”
But that’s not the problem. The issue isn’t the method — it’s the margin.
Falling Short on Owner’s Pay? Here’s a Profit First Reality Check
Let’s back up for a second.
Profit First is a system, not a punishment. It’s meant to highlight when your business model needs attention. If you consistently can’t pay yourself, something needs to shift.
And the good news? That shift is usually fixable.
What to Do When You are Not Able to Pay Yourself
Here’s what I tell clients when we hit this wall:
1. Calculate Your Real Revenue
Start by subtracting pass-through expenses (like contractors or product costs) from your gross income. That’s your Real Revenue.
2. Look at Your Current Allocation Percentages (CAPs)
What % of your Real Revenue is going to:
- Owner’s Pay
- Profit
- Taxes
- Operating Expenses
This gives you a baseline. From there, we build a plan.
3. Start Small When You Cannot Afford to Transfer to Owner’s Pay
If you’re only paying yourself 5% today, that’s okay. Let’s aim for 6% next month. You don’t need a dramatic overhaul; you need consistency and slow improvement.
4. Review OPEX Line by Line
Your expenses are stealing your paycheck. Review every recurring charge and ask, “Is this giving me a return?” If not, it goes.
5. How to Temporarily Adjust Percentages When Owner’s Pay Falls Short
You might need to reduce Profit or Tax allocations temporarily (not forever!) to fund your Owner’s Pay and survive this season. That’s not failure… that’s flexibility.
What Not To Do
- Don’t give up on the method
- Don’t steal from taxes without a plan
- Don’t normalize skipping your paycheck
Real Client Example
📸 Photographer earning $225K/year
CAPs:
- 2% Profit
- 5% Owner’s Pay
- 13% Taxes
- 80% OPEX
Venus Plan:
- Cut software subscriptions and studio rent
- Moved to 3% Owner’s Pay, 10% Profit
- Built up to 8% Owner’s Pay in 90 days
Venus’ Bottom Line
When you are struggling to pay yourself, it’s not a personal failure — it’s a cash flow signal. Profit First helps you see it faster, so you can fix it sooner.
The goal isn’t to stick to perfect percentages. It’s to build a sustainable business that pays you consistently and grows with intention.
Want Help Getting There?
I’m Venus Michael — a Profit First Certified Bookkeeper at One21Account-Ability. I help creative entrepreneurs, consultants, and service providers apply Profit First in a way that actually works for their business and life.
Feeling stuck when it comes to paying yourself? Let’s build a custom plan together.
