Entrepreneur Compensation

By: A Staff Writer

Updated on: Sep 12, 2024

How Much Should YOU Get Paid?

Founder salaries are tricky. How do you find the balance that’s fair and sustainable?

• Start With Survival: Early on, you may need to bootstrap – pay yourself the bare minimum.
• Market Matters: Research comparable CEO salaries in your industry, size, and location.
• Profit vs. Reinvestment: How much can the business AFFORD, while still fueling growth?
• Sweat Equity Counts: The long hours justify compensation later, track this diligently.
• Tie Pay to Performance: Set goals, and bonuses for hitting them, to incentivize everyone.
• Be Flexible: Revisit your compensation as the business changes. No hard and fast rules!

Founder pay is a balancing act. Be transparent, realistic, and focused on the long game.