how do business owners who operate a business that loses money year after year, afford to pay themselves?

Question

Let’s say you went $100,000 in debt starting a business, and it costs $5000 to operate every month and you make only $4000 every month for the first year.
But you have a house and family, etc.

Where is the money going/ coming from??

In: Economics

Answer 1

The really short ELI5 is that they start with a fund (typically a loan or maybe their own savings). They operate the business and pay themselves out of that fund, and they gradually run that fund down to nothing. Then they go bankrupt.