Earning money when you’re starting up: “I haven’t paid myself in 18 months”

Rachel Munro’s LinkedIn post struck a chord last week. Her story about going without pay for over a year and a half has hundreds of comments.

The Rebel Baker founder says that so many founders struggle quietly:

“I’d gone months without a wage and was tired of pretending everything was fine.  Posting about it felt exposing but also freeing.

“It opened up honest conversations and showed that being transparent about hardship doesn’t make you look weak – it makes others feel seen.”

Founders often go without pay when starting up

TKA Finance Training owner Tara Askham says it’s “extremely common” for founders to go without pay in the early days of starting a business:

“Most founders end up reinvesting profit back into growing the business. It can take time to get to the point where you can take a regular salary or dividends.”

Rachel invested £100,000 from the sale of her previous business to get The Rebel Baker off the ground.

She says most founders go through financial difficulties when starting up:

“Don’t assume financial struggle means you’re failing. Know your numbers, speak to your suppliers and ask for support sooner than you think.

“Drop the pride, build a network you can lean on and remember that growth often happens in the messy middle.”

Investing back into the business

Ali Kazmi went two years without being paid when he launched Ethical Equity:

“Coming from humble beginnings, I was used to surviving with little. Every penny went back into the business. It wasn’t about quick wins – it was about building something real and proving that people like us can make it too.”

He advises other entrepreneurs to build slowly, stay disciplined and focus on creating something sustainable.

SaaS Success founder Scott Reynolds gave himself a six-month runway to reach profitability.

“It was definitely a big leap of faith. My wife was still on maternity leave when I left my job, so we were very reliant on my salary to pay the bills.

“Ultimately, I believed in myself enough to take the leap, but it was certainly a scary time.”

Scott took a number of practical steps to make the process easier including:

• running the business as a side hustle for several years

• developing quarterly plans through GrowthClub events

• setting targets for different revenue streams

Staying motivated when you’re facing difficulty

Ali says not being paid was incredibly tough.

“I had a young family – a wife and twin boys – to support. Every decision was a trade-off between putting food on the table and building the business.

“I lived lean, picked up work on the side, and relied on sheer belief, faith, and persistence to push through.”

Rachel echoes the sentiment, using the business’s purpose to stay motivated during financial hardship.

“I remind myself who and what I’m building this for; my daughter and the people who rely on allergen-safe food.

“When money is tight, I focus on momentum. Taking action, even in small steps, keeps fear from taking over and makes the mission feel bigger than the stress.”

Our recent blog post on getting your inspiration back is packed with practical tips if you find yourself in this situation.

Coping with short-term financial problems

While it’s common for founders to go without pay when they launch, it can also happen during difficult trading periods.

It's important you take steps to manage the situation if you have issues, advises Tara.

“I think we can all relate to having cash flow struggles; it's part of the journey as we start and grow. We need to ensure we are proactive and don't bury our heads in the sand!”

She advises anyone who’s struggling to:

• track the numbers

• ensure that business and personal expenses are kept separate

• talk to your accountant

• find a business mentor

Tara is running a Lunch + Learn on Money-saving questions to ask your accountant on 8 October 2025, if you’re looking for more advice.

Related resources about founder pay

• An essential guide to how much you should pay yourself (Enterprise Nation article)

• How to pay yourself from your business (Enterprise Nation Lunch + Learn)

• How your small business can cut costs and stay profitable (Enterprise Nation article)

• Taking money out of a limited company (Gov.uk guidance)