Founder & Employee Compensation When You’re Cash Poor

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In the earliest days of a startup venture, there are no published compensation rates or even good studies to use as guidance.  That’s because each company and founder situation is so different.  The process of compensating founders and early employees while you’re cash poor involves more art than science.

Many startups begin with a founder or two that spend part-time on the idea while still having a paying job to cover their personal expenses.  Another common approach is to secure a small amount of funding via “friends and family” or even to self-fund with personal savings.  But what about founders that join the venture full-time and need cash compensation?

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Note:  This article is included in another Founders Academy course that you might have already completed.  Also, many of the concepts described in this article are also included in the video that comes next in this module.

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