I can tell you that I have heard the same responses over and over again:

• “I’ll pay myself when the business is working.”
• “Any money I make needs to be reinvested back into the business.”
• “I’ll take something – if there’s anything left.”
• “Oh, we have a joint pot at home. My partner and I share everything.”

These answers might sound different on the surface, but they all point to the same issue: women founders often put themselves last – financially and mentally. According to a 2022 study by the Nasdaq Entrepreneurial Center, 52% of women entrepreneurs aren’t paying themselves while building their businesses. These are incredibly talented, driven women – yet many struggle to take a clear, honest look at their finances.

Of course, the reasons behind this vary. Some women feel their business isn’t "ready" to pay them yet. Others haven’t even considered themselves worthy of taking investment, even though they have incredible, viable ideas. And then there are those who have secured investment – yet still believe, “That money is for the product.” Even if I then ask, “Who makes the product?”, I am often faced with the response that not taking a salary is the right thing to do.

Not paying yourself is a business risk

What I am going to write now – and what I say in response to all of the women I speak to – is that not paying yourself isn’t just a personal sacrifice, it’s a huge red flag for your business. First of all, let’s look at what it says about your venture to investors. If your business can’t even afford to pay its founder, what does that say about your profitability? Does it mean that you have got your pricing wrong? Does it suggest that the business isn’t sustainable long-term?

Secondly, the more insidious and damaging impact is upon yourself.  Not paying yourself what you are worth normalises the idea that your work isn’t valuable. I have seen this lead to demotivation, resentment and unsustainable decision-making. I would add that just paying yourself sometimes is even worse, as this feeds inconsistency, which can turn into a pattern in startups.

Avoiding the numbers

I want to add here in the lead up to me asking questions, many of the founders that I work with have been avoiding even looking at the numbers for months, if not years. These are passionate, driven and visionary women but they simply do not have confidence when it comes to financial literacy. Instead, they look at the figures as little as possible, and not paying themselves is part of this. At least this is one cost they know and understand (because it’s often zero!).

But financial literacy is not optional. If you don’t understand your margins, cash flow and revenue streams, how can you make informed decisions? How can you grow? Remember, if your plan is not profitable on paper, it will not be profitable in real life. This means getting the information down on paper and understanding it.

Non-profit association, WEgate, carried out a survey of women founders in 2022. It found that two-thirds of respondents said that good financial literacy skills are very important. However, only 11.18% of respondents said they had expert financial knowledge and that they believed only a mere 0.59% of other women entrepreneurs had this level of expertise. There is a huge mismatch between how important women founders think financial literacy is and how many of them actually believe they have attained it. But also – that they do not see it in other women business owners.

The impact in a pitch meeting

Here’s the crunch. If you are not financial literate, how are you going to stand up in a room full of potential investors and sell them your business? How are you going to create a compelling case for investment when you are not really sure of the figures? And – to come back to my very first question – how are you going to persuade them to invest when you are not investing in yourself?

Yes, the fact that women receive less than 2% of venture capital funding is outrageous, but are some of us seeking out investment before we are ready? If you’re not paying yourself, you’re in this camp. Here’s another couple of questions to ask yourself:

• Do you have a clear vision backed by a well-thought-out business model that is beginning to show results?
• Can your business support you financially, even in its early stages?
• Do you have a profitable, scalable model that makes financial sense?
• Are you treating it as a sustainable business – or just a passion project?

Investment isn’t just about securing funding – it’s about building a business that’s worth investing in.

I’m not ignoring the funding gap – but if 52% of women entrepreneurs aren’t even paying themselves, how many brilliant ideas are never making it past the starting line because reality hits and those women have to walk away.

So how do we fix this?

Start paying yourself – even if it’s a small amount but do it regularly. It’s a commitment to yourself and your business. Also commit to learning your numbers. Profit isn’t what’s left over; it’s what’s planned. Know your margins, cash flow and pricing.

You might also need a change in mind-set. Money isn’t something to fear or feel guilty about – it’s a tool for growth. This International Women’s Day, let’s not just talk about empowerment – let’s act on it. When more women take control of their financial future, we don’t just build better businesses - we build a stronger, louder and more powerful presence in the entrepreneurial world. This is how we create the surge that shifts the 2% – not just by demanding change, but by building businesses so strong that the dial has no choice but to move.

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