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What Should You and Your Team’s Salary Be When You’re Just Starting?
“I need to make $60,000,” “Mary”, the CEO, said to me. “Is that too much for me to make?”
“Maybe. Maybe not,” I replied. “I can’t just give you a yes or no answer. You have to walk through some steps.
“There’s a very simple rule to figuring out your salary after you’ve just raised a round of angel funding. Before I walk you through this very simple rule, let me explain what the rule isn’t:”
A. You don’t determine your salary based on what other startup CEOs are making.
“It’s irrelevant in your situation what other CEOs are making. There are too many other variables,” I said.
You have to consider all of your costs. You have to forecast your revenue, if you have any. And you have to know what you’re going to pay the employees you have, and the employees you expect to have for the next two years or so.”
B. You don’t determine your salary based what you’d like to make.
“But, I really need to make $60,000. My husband just lost his job, and we need the extra money,” Mary said.
“I understand the challenge. However, I know your husband’s situation is relevant to…
