Who gets paid first and who gets paid the most diagram:
5. Business Owner
4. Investors
3. Specialists (accountants, employees, consultants)
2. Employees
1. Assets (business or other investment)
A business owner must pay the asset first. That means continually reinvesting enough money and resources in order to keep the asset strong and growing.
The reason the business owner gets paid last is because he or she starts a business in order to be paid the most. But in order to get paid the most, the business owner must make sure that the rest of the business is paid first. That is why I am training you to not work for money.
You are learning to delay gratification and work to build assets that grow in value. I want you to learn to build assets, not working for money.
The business owner or entrepreneur gets the big bucks at the end of the day because he or she must be the most generous at the start of the day.
The business owner takes the most risks, and also gets paid last.
If they have done a good job, the amount of money can be staggering.
If the business owner has done a good job at paying everyone else to build his asset, the asset should be worth far more than he could ever have paid himself.
Too many start-ups fail to follow this diagram. There are many people who form a business by borrowing money or raising capital from friends, family, and other investors.
They immediately rent a big office, buy a fancy car, and pay themselves huge salaries from investors’ capital rather than from income from the business.
Because the investors’ capital is mismanaged, and there is still no income, they then try to pay the business, their employees, and specialists as little as possible. In such ventures, it is often the investors that get stuck with the bill, as was the case in many start-ups.
