How to balance business growth with personal wealth

In the ever-evolving landscape of entrepreneurship, founders face unique challenges. Juggling personal finances, business growth, and mental well-being is no easy feat. 

During the Breakthrough Sessions 2024, a panel of experts—Adrian Stone, Founder of AngelCube, Aprill Enright, Co-Founder and CEO of Tractor Ventures, and Victoria Beal, Founder of Submarine—shared their insights on how founders can balance these critical aspects of their lives while steering their businesses toward success.

The Transparency Debate

A central topic during the session was the importance of transparency in personal finances for founders. Victoria Beal, an advocate for transparency, shared her perspective on the matter. “I used to think my financial situation wasn’t my team’s concern,” Beal admitted. “But I’ve come to believe that, to foster a truly empathetic culture, the team should understand what’s at stake for me personally.”

She emphasised that, for founders juggling personal responsibilities alongside business growth, being open about their financial realities helps employees better understand the risks involved in entrepreneurship. This transparency, she argued, is crucial in creating a healthy, supportive workplace culture. “It’s about showing vulnerability,” Beal added, “and it helps bring the team along on the journey.”

Venture Capital, Debt, and Hybrid Models

Aprill Enright, Co-Founder of Tractor Ventures, brought valuable insights on how founders should approach funding their startups. From equity to debt financing, the key is to understand the implications of each choice. “There’s the traditional venture capital route, where you sell a percentage of your future earnings and possibly hand over some control. But there’s also non-dilutive debt, where your future earnings are yours but you take on the burden of interest,” Enright explained.

“When you’re talking to VCs, you need to be optimistic, but when dealing with debt, you must be more conservative and realistic about your costs.”

Aprill Enright, Co-Founder and CEO of Tractor Ventures

Enright pointed out that founders must be aware of their own goals and risk appetite before choosing a financing option. She also stressed the importance of operating “at two speeds” when seeking hybrid financing. “When you’re talking to VCs, you need to be optimistic, but when dealing with debt, you must be more conservative and realistic about your costs.”

Exits and Financial Security

For many founders, the ultimate goal is a profitable exit, but Adrian Stone, founder of AngelCube, stressed the need for financial security whether an exit materialises or not. “Most founders dream of a big exit, but statistically, it doesn’t happen for everyone,” he said. Stone’s advice to founders is straightforward: “Pay yourself a living wage. Treat your business like an investment, and take money out to invest in other assets—outside the business.”

Stone recounted a personal story of investing in real estate using funds generated by his startup. “I bought a building using the company’s cash flow. Even if the business had gone under, the real estate investment secured my financial future.” Stone’s takeaway was clear—separate personal finances from business finances and diversify income sources to create a safety net.

Mental Health vs. Financial Health

The session also delved into the intersection of mental health and financial stress for founders. “There’s always the pressure to sacrifice personal well-being for the business,” Beal said, speaking from her own experience. “But the reality is, if you’re not well, the business will suffer too.” Beal emphasised the importance of self-awareness and regular reassessment. “For me, I prioritise my mental health because if the business shuts down tomorrow, I still need to be healthy.”

“For me, I prioritise my mental health because if the business shuts down tomorrow, I still need to be healthy.”

Victoria Beal, Founder of Submarine

Stone echoed this sentiment, adding, “Many founders believe burnout is a necessary evil, but it’s preventable. The key is setting boundaries and making sure that your drive for financial success doesn’t come at the cost of your well-being.”

How to Protect Against Burnout?

Aprill Enright tackled the issue of burnout head-on, offering practical advice on how founders can protect themselves financially and emotionally. “It’s essential to create financial safeguards. Set a limit on how much personal equity you’re willing to risk and regularly reassess your financial position,” she said.

No matter how your business performs, ensure you’re investing in yourself along the way.”

Adrian Stone, Founder of AngelCube

Enright also advocated for founders to outsource or delegate non-critical tasks, which can reduce the burden on their personal time. “Invest in a cleaner,” she said humorously, “so you’re not using your downtime doing chores. It’s small, but it can make a big difference.”

The Breakthrough Sessions 2024 panel provided a nuanced look into the challenges founders face, offering practical advice on navigating the tricky balance between personal wealth, business growth, and mental health. 

Whether through strategic transparency, thoughtful financial choices, or proactive mental health practices, the message from the experts was clear: success is not just about the business. It’s about creating a sustainable, healthy path for the founder as well.

As Adrian Stone put it, “No matter how your business performs, ensure you’re investing in yourself along the way.”