Maximize Growth or Prioritize Your Pay? (For Contractors)
Running a construction business means making tough calls—like deciding whether to pay yourself this month or put every dollar back into the business.
Spoiler alert: The answer shouldn’t involve surviving on gas station hot dogs for months on end. 🌭
Did you know that 50% of business owners actually skip their own paychecks just to keep their company running? That’s right—half of us are out here working for free.
But here’s the thing: You didn’t start your business to be the lowest-paid person on the job site.
The 4 Phases of Business Growth (And When to Start Paying Yourself)
Every construction business goes through growth phases, but if you’re not prioritizing your own paycheck at the right time, you’ll stay stuck in a cycle of financial stress.
1️⃣ Start-Up Phase (6-18 Months): Living Off Scraps?
This phase is all about hustling to get jobs, lining up suppliers, and making sure cash flow doesn’t run dry.
🚧 The mistake: You pay everyone—crew, vendors, and suppliers—but leave yourself out.
✅ The fix: Build your pay into the budget from Day 1, even if it’s small.
Why? Because if you don’t, you’ll end up chasing cash flow forever—and that’s a brutal way to run a business.
2️⃣ Building Phase (1-3 Years): The Growth Cash Trap
By now, you’ve built momentum, but every dollar you make gets swallowed up by materials, payroll, and new equipment.
🛠️ Here’s the rule: Get yourself on payroll by Year 1—even if it’s just $3K/month.
💡 Why? Because paying yourself forces you to run a profitable (not just busy) business.
If you keep paying yourself last, you’ll never break out of the cash struggle cycle.
3️⃣ Growth Phase (3-5 Years): The Paycheck You Deserve
By this stage, you should be making enough to pay yourself a real salary—not just drawing cash when it’s available.
✅ Set up a regular paycheck (no more "taking a draw when things are good")
✅ Pay yourself based on industry benchmarks—not guesswork
Because if you’re still barely scraping by while running a $1M+ business, something’s off.
4️⃣ Scale Phase (5+ Years): The Business That Pays You Back
At this level, your cash flow should support both growth AND your personal income—without struggle.
🚀 The goal: A business that grows AND funds your lifestyle—not one that drains it.
If you’re 5+ years in and still struggling to pay yourself, your cash flow strategy needs a fix.
Final Thought: Cash Flow Fuels Growth—But So Do You
You don’t have to choose between paying yourself and growing your business. Smart financial planning lets you do both.
So, tell me: Are you paying yourself first or reinvesting every dollar? Hit reply and let me know.
And if this hit home, share it with a fellow contractor who needs to hear this.
I’ve developed The Contractors Financial Blueprint Assessment specifically for contractors who want to take control of their finances. If you’re ready to dig deeper and boost your cash flow, the assessment takes less than 90 seconds with personalized results sent right to your mail.
[Take The Assessment], and let’s talk!
Have a great (and profitable) week! 🚧💰
Patrick
Patrick Shurney, MBA
Founder, 3P Consulting
📞 443.539.6276
🌐 www.3pcllc.com
Getting Trade Contractors’ Finances Sorted
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About Me:
As a veteran in financial coaching with over 30 years of corporate banking experience, my mission is to empower Trade Contractors like you to become numbers confident, optimize cash flow, leverage debt, and pay yourself competitively.
Ready for More?
Here’s how I can help you:
1. Profit Accelerator Program: Master your business numbers in just 30 days, uncovering hidden profits of $25K-$75K+ over the next 3-12 months.
2. Loan Consulting: Need the best rates and terms on your next loan? With 30+ years of banking experience, I’ll make sure you get a deal that works for you.
3. Profit Accelerator Digital Course: Become confident with your numbers, boost cash flow, and learn to pay yourself first in just two hours. This course is designed for busy professionals who want immediate results. ($197)
Ready to take your financial strategy to the next level? Let’s connect and make sure you’re running a thriving business while paying yourself what you’re worth.
