What is the average salary of a startup founder?

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The salary of a startup founder is always a sensitive issue. However, does this mean that the founder should not receive any compensation? It really all depends on the situation of the startup in question, its financial health, and the role the founder actually plays in the company. What is the average salary of a startup founder? Read on.

What is the average salary of a startup founder? – index:
Startup Founder Salary
Cash flows
The startup phase
Industry
Startup Founder Salary vs. Employee Compensation
How to calculate a startup founder's salary?
Summary
Startup Founder Salary
Any startup founder quickly learns that running a azerbaijan whatsapp number database is not easy. It is especially difficult in the early days of a startup, when the founder is forced to work under constant, often unbearable pressure and receives no salary.

The salary of a startup founder is always a sensitive or at least debatable issue. Should a startup founder be paid like any other employee? The idealistic view says that startup founders shouldn’t make any money in the early days of the company. But what if the founder also serves as CEO? Shouldn’t every employee get a salary if they are on the payroll? What is the average salary of a startup founder?

Cash flows
To begin with, you should take a look at your startup’s cash flow, i.e. how much money is coming in and going out of the company. The founder’s salary should depend on this, because in the early stages of a startup’s development, it is not yet possible to talk about its profitability.

Depending on the source of your money, you need to make a rational decision about whether taking a salary makes sense. However, if you are on the payroll (e.g., in the role of CEO), it is best to talk to your board about compensation right away. Studies show that founders receive between 8 and 12 percent of the funds at their disposal.

The startup phase
The more a startup grows and the more profit it generates, the higher the founder's salary can be. The level of the founder's salary should depend on the company's situation, and this is often also correlated with its stage. If the company is growing steadily and going through the next stages of development, the founder's salary should also increase.

startup founder salary
Industry
A startup founder’s salary can also depend on the company’s industry, which affects how much funding you can get. For example, tech founders working in industries like VR or e-commerce are often better compensated than startup founders in industries like agriculture or education.

Startup Founder Salary vs. Employee Compensation
In fact, startup founders should only be paid if they work as regular employees and are on the payroll. Otherwise, instead of a regular salary, they should receive dividends and commissions. Understand that being a founder does not entitle you to a higher salary than others. If you can’t pay your employees that much, don’t pay yourself that much either.

How to calculate a startup founder's salary?
First, start by assessing the company’s financial health. This will tell you whether you are eligible for a salary or not. Next, calculate your budget by taking into account all your sources of income and expenses. Decide how much money you will need each month or each week, and that will be your salary. Set milestones after which you will give yourself a bonus.

Summary
The salary of a startup founder is always a controversial issue, especially in the early stages of a business. Here it is worth balancing the interests of the founder and the company. It is common practice for startup founders to pay themselves nothing at the beginning. The situation changes as the company grows and becomes more profitable.