As the founder of a potential 1.2M annual revenue project, I realize that the least I take the more my company has to spend, that being said, I want to be rewarded for my work and have the ability to splurge into ventures I am interested in, as an interested angel investor.
There are several factors you need to consider such as what other resources you have available for the business, the current gross/ net profits, are there other founders taking salaries, what are the available opportunities for you to defer your salary and put it toward growing the business, etc
In my case being the key founder in very tough economic cycle I had no choice but not to take a salary for the first few years. Even after my venture was cash flow positive I took half my normal salary and showed the balance as deferred comp - so that it was reflected on the books - and available for me later to take as salary or put towards equity
You used the term Potential 1M revenue firm so I am not sure where u stand now - happy to give more insights if u can give me more 'Clarity' !
Answered 9 years ago
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