One of the most important rules of successful longtime business owners, right after "Cash is King", is "Pay Yourself First." After all, you do not know what the business will be like in a year or two or ten, so don't shortchange yourself. Of course, you need to invest in your business's growth as well, but don't live in poverty because every penny of profit is plowed back into the business.

For years, people I have known in the VC business, as well as entrepreneurs who have been funded by VCs, have discussed the 7-2-1 rule. For every 10 investments a VC fund makes: 7 will fail - "dogs" 2 will hang around, perhaps returning the initial investment - "zombies" 1 will be a great success - "superstar" This formula is why VCs are willing to take such risks; they expect many companies in their portfolio to fail.