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

They can’t afford to pay themselves, they live off their savings and whatever they can borrow until there’s nothing left, then they have to give up, go out of business, and get as job someplace else.