, by

When one is about to launch a new venture, someone has to take the risk and dedicate years of their life to get it going.  One important question arises when funds are being raised.  How much do we pay the CEO of a start-up or the founders?  The CEO has to pay his personal expenses and survive and the investors want as much of the seed money to be pumped into the development and marketing of your product whether physical or digital.

What is the right number?  How do you find that sweet spot?  I can say from personal experience being the CEO of a start-up that I made my investors feel comfortable by taking a pay cut from what I was making as an electrician when I started.  That showed that I believed and would put in the energy and time to generate enough business for the company to meet and surpass my old salary.  It has been 3.5 years since launch and I am close to pushing past that original number.  It takes some time since revenues need to cover cost of good, overhead, and then what is left over changes the game. 

I have heard of start-up CEO’s demanding large extravagant salaries and that is not the right attitude.  Sacrifice is the energy a start-up needs.

Imagine it is like you have a new garden of vegetables you planted.  They need water (funds) to grow and you only have 100 cups of water a day to feed your plants and yourself.  You could survive and remain healthy and strong on 15 cups a day but you want 25 cups or 30 cups.  Sure you can take them but your plants will be lacking and possibly even die. 

Think twice if you are in this position and make sure you take only what you need until the crop is plentiful.  Than you can share in the harvest and distribute to yourself and the whole team involved.