Vinod C, founder of Naturally Yours, argues that entrepreneurs need personal financial stability while building a business.
For several startup founders, putting money back into the company is treated as a sign of commitment. But that approach can become difficult to sustain when entrepreneurs continue working without drawing any meaningful income from the business. Naturally Yours founder Vinod C has now argued that founders should pay themselves, whether their companies are bootstrapped or backed by investors.
Founders often accept financial uncertainty early on in their business. Expenses such as hiring, product development, marketing, and technology can take priority over personal income, particularly when a company is still trying to establish a stable revenue base. However, operating indefinitely without a salary can create another kind of pressure. Personal expenses don’t disappear just because a company is young, and prolonged financial insecurity can affect how founders approach business decisions. Vinod C has suggested that even a modest monthly salary can make a difference. He cited around ₹25,000 as an example, stressing that the exact figure depends on the founder’s circumstances.
Bootstrapped and funded startups face different pressures.
Bootstrapped companies generally have to manage founder salaries alongside limited internal cash flows. Entrepreneurs may therefore need to balance personal income with spending on areas that directly support business growth.
Funded startups, meanwhile, operate with external capital and investor expectations. Even in these companies, founders may hesitate to draw salaries because they believe every rupee should go towards expansion. But paying a reasonable salary is different from taking excessive money out of a young business.
A salary can be part of financial planning.
The broader argument is about sustainability rather than personal spending. A founder with no reliable income may eventually be forced to make decisions based on immediate financial needs rather than the company’s long-term interests.
A structured salary can help separate personal finances from business finances and provide greater clarity when assessing the company’s actual operating costs. Startup culture often celebrates sacrifice, long working hours and extreme frugality. While discipline matters in the early stages of a venture, constant financial deprivation shouldn’t automatically be treated as a measure of entrepreneurial commitment.
For entrepreneurs, the challenge is therefore not simply whether to pay themselves, but to determine a level of compensation that remains responsible for the business while allowing them to keep building it with financial stability.
