How to pay yourself as a startup founder | Startup Finance Basics w/ Kruze's Scott Orn | E1860

(0:00) Introduction of Scott Orn and discussion on founder salaries
(2:25) Trade-offs of starting a company and how salaries increase with funding
(4:41) Role of builder founders and dangers of underpaying oneself
(8:05) Transitioning into entrepreneurship and managing side hustles
(10:03) Importance of board-approved founder salaries and discussing equity
(13:05) Gender disparities in founder salaries and efforts to close the gap
(15:52) Managing personal expenses and company accounts
(17:05) Leading by example and salary distribution within a company
(20:26) Investor expectations and high-value employees earning more than founders
Subscribe to This Week in Startups on Apple: rb.gy/v19fcp
Check out Kruze: kruzeconsulting.com
X:
/ jason
/ scottorn
LinkedIn:
/ jasoncalacanis
Listen here:
Apple: podcasts.apple.com/us/podcast...
Spotify: open.spotify.com/show/6ULQ0ew...
Overcast: overcast.fm/itunes315114957/t...
More from us:
Twitter: / twistartups
Instagram: / thisweekinstartups
Official site: thisweekinstartups.com
Subscribe to our KZbin to watch all full episodes:
/ @startups
Subscribe to TWiST Clips for all the best moments:
/ @twistclips
#startups #entrepreneurship #investing #angelinvesting #tech #news #business

[@Andres_853]

Hearing from an experienced investor who has survived adversity and prevailed is always motivating. It may be frightening when your portfolio goes from green to red, but if you have invested in strong firms, you should maintain growing them and stick to your goal.

[@Jonesmatsunaga]

I don’t think i need a finance advisor though . I can manage my own money and investment. Paying someone to tell me how to manage my hard earned money, funny!!!

[@Muriel-1112]

This is useful information; I copied her full name and pasted it into my browser; her website popped up top search and her qualifications are excellent. Thanks for sharing. I will write her an email shortly!

[@hillarybriggs2561]

she actually appears to be well-read and educated. I just did a GOOGLE search for her name and found her webpage, I appreciate you sharing

[@hillarybriggs2561]

Hopefully I can get a better insight into my portfolio.

[@primiecegnar7516]

Thank you Jason and Scott. This is more well-rounded conversation with most of the contents I have seen. I learned a lot.

[@petersuvara]

Love this video. Reality and no hype! Thanks guys.

[@hsarp1990]

6:00-7:45 - so true. Made the mistake of paying ourselves too little as founders in my previous venture and it definitely does put a lot of personal stress. Super valuable info overall. These things do need to be publicised.

[@KruzeConsulting]

Glad you found it useful!

[@nassifchedrawi8133]

Great content and advice. Getting yearly board approval for the key executive's salaries goes a long way AS WELL AS having a party approve founders expenses. A clear responsibility matrix is also a good solution.

[@KruzeConsulting]

100%

[@GrahamQuigley]

I needed to hear this! ❤ So good on the personal runway. All so needed info, and so timely!

[@AIlysAI]

Love it Jay, keep this up...!

[@BertSeale]

Great information love these guys

[@ShareYaarNow]

Great info for founders.

[@whattowatchrightnow]

but, what if I already have sales? I'm not really burning investor money to pay myself.

[@TheHamyJ]

Curious how these numbers change outside of Silicon Valley. Are these numbers a countrywide average?

[@KruzeConsulting]

Great question. these are a country wide average, although about 60% of the data is from Silicon Valley. We do see slightly lower numbers in some area like TX or FL, but not really very much. We've seen salaries (for all types of tech employees and founders) start to become pretty standard, with not a lot of regional variation. If you are a founder of a Silicon Valley startup, and you are are able to raise professional funding, you should feel confident asking for the typical amount, regardless of where you are in the US (in our opinion).

[@TheHamyJ]

Makes sense. Thanks for the response!