Ah, TikTok. One minute it’s our fave app and the next we’re tempted to banish it from our phones forever. Yet somehow we never can imagine life without it. TikTok has been both banned AND brought back to life again. (So weird…). If TikTok has been a big pillar of your business strategy life the thought of losing it again can feel overwhelming… Queue a bunch of people literally learning Mandarin and moving over to RedNote. How are you feeling about it? Hit reply and drop into my inbox.

TIKTOK BAN: yay to our fave(?) app being saved! Because (shock) that women would have become the largest victims of the TikTok ban with 84% of influencers on the platform being women according to NPR

ZUCK: Zuckerberg wants more 'masculine energy' at meta and goes on to roll back all their diversity efforts and layoff 5% of the workforce, what the zuck?

ACCELERATE: Starting rn beauty brands like 4AM, Bounce Curl and The Steam Bar will receive a 6-month crash course in building a successful brand with a little help from Sephora (alumni include: Hyper Skin & Range Beauty)

LA FIRES: Female Founder Collective’s ‘NY Loves LA’ campaign raises $1.7 million for wildfire relief in just 1 week as LA beauty and fashion brands collect donations to support each other after fire damage

FUNDING: Raspberry AI raises $24M from a16z to accelerate fashion design

The question of when and how much a founder should pay themselves is one that’s long been debated (in the startup world - on the pod - in my head). We’re often caught between growing the business “at all costs ✊” and taking care of our personal needs. Should we reinvest every dollar into growth, or when do we take a little for ourselves?

The answer isn’t one-size-fits-all, but here’s what we’re hearing from industry reports and seasoned entrepreneurs:

When you’re building something from scratch, profits and growth don’t always go hand in hand. Sandy Ronalds from Nat V Basics shared that it’s often more important to prioritise hiring the right people and investing in your business early on (Sandy worked for three years without a salary - focusing on growing her company and building a solid team before paying herself).

Similarly Elle Liu from Eucalypso said that she wanted to wait until the business could match the salary of her previous job before taking any money out. The message here? Reinvesting in the company’s growth is crucial in the early stages and founders often go without a salary until things stabilise.

On the flip side, founders like Galyn Bernard from Primary went four months without a salary while raising a seed round. The goal was clear: raise enough capital to eventually pay themselves and build the company. This is a familiar route for many entrepreneurs who face the tough decision of choosing between immediate personal income and the long-term health of the business.

It’s all about reaching that sweet spot of stability and profitability: where you can finally pay yourself without taking away from business ops?

The good news? Right now we’re seeing founder salaries on the rise. Though there are also more of us who aren't paying ourself anything at all - how’s that for mixed messaging?? (btw, that number is up from 7% to 9% in 2024)

Across Europe we’re seeing a steady increase in salaries and bonuses, especially in later-stage and bootstrapped startups. According to a (fab) report from Creandum the average salary for a startup founder is up 17% this year, with some founders now earning six-figure salaries. That said, salaries vary greatly depending on factors like location and stage of the business.

And let’s not forget the outliers. Peter Dering from Peak Design has gone 14 years without a salary, and Gina Kuyers from Luxeire still doesn’t pay herself. They take the approach that growth and employee well-being come first, and rewards come later when the company is on solid ground. “Alright for some” spring to mind?

Ultimately, when you start paying yourself depends on a few key factors:

• Biz Health ❤️‍🩹 can your company sustain both your salary and reinvestment?

• Personal Financial Needs 💰 are you able to cover your personal expenses without drawing from the business, or is it time to pay yourself just enough to maintain balance?

• Milestones📍 consider setting a revenue target or securing a funding round to ensure that you’re not pulling from the company’s cash flow too soon

The Dunning-Kruger effect often strikes in these moments (if you read last weeks newsy you know!) the more we know, the more we doubt ourselves. If you’re struggling with whether or not to pay yourself, remember: the less you know, the more confident you are. Trust yourself. Take it slow. As long as you're putting in the work, showing up, and learning along the way, you're on the right path.

✨ It feels so good to be in your inbox, bestie! Let me know what you thought today 💗