[LondonOpenCoffee] Funding -- 'acceptable' salary for founders

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[LondonOpenCoffee] Funding -- 'acceptable' salary for founders

chencho-2
Morning all, 

I'm in the process of dipping my toe back into the startup world having spent the last year working for the man and being bored silly. My previous company stuff was bootstraped and revenue generating from the get go, so i never needed to worry. But for this new project i'm toying with the idea of getting some seed funding to get me going and hit some growth early. 

But now i'm an adult with adult responsibilities (i.e. i have a child on the way) my outgoings are much higher than in the past. (rent @ 2k a month, personal bills and debt at 1k and i need to spend on food etc...). As such more of the funding would be put to founder salaries than say 10 years ago. But i'm conscious that funders dont really want to pay founder salaries, they'd rather spread the cash somewhere else. (At least that's my understanding) 

My questions i guess are:

1. Lets say i'm looking for 100k and there are two founders, how much of that money is acceptable to say "this is for founders to work full time and not have to work anywhere else and get stressed"
2. If i said this is for 6 months run rate, would they be more agreeable? 

In terms of actual numbers, as intimated above, odds are i need around £4k a month to live with the rents (partner not working means i have to foot all bills obviously) and all other things that i need to pay. As there are 2 of us, i would assume that number would be doubled, only fair that we both get the same amount (or is that wrong)?

Thanks in advance

Andy 




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Re: [LondonOpenCoffee] Funding -- 'acceptable' salary for founders

chencho-2
I think founders are better when they're self sustaining. You can probably find an income by splitting your time.

Entrepreneurship is what happens when there's not enough time and money. If there's enough of both, you're just a manager! :) 

A

On Thu, 10 May 2018, 11:01 andrew davey, <[hidden email]> wrote:
Morning all, 

I'm in the process of dipping my toe back into the startup world having spent the last year working for the man and being bored silly. My previous company stuff was bootstraped and revenue generating from the get go, so i never needed to worry. But for this new project i'm toying with the idea of getting some seed funding to get me going and hit some growth early. 

But now i'm an adult with adult responsibilities (i.e. i have a child on the way) my outgoings are much higher than in the past. (rent @ 2k a month, personal bills and debt at 1k and i need to spend on food etc...). As such more of the funding would be put to founder salaries than say 10 years ago. But i'm conscious that funders dont really want to pay founder salaries, they'd rather spread the cash somewhere else. (At least that's my understanding) 

My questions i guess are:

1. Lets say i'm looking for 100k and there are two founders, how much of that money is acceptable to say "this is for founders to work full time and not have to work anywhere else and get stressed"
2. If i said this is for 6 months run rate, would they be more agreeable? 

In terms of actual numbers, as intimated above, odds are i need around £4k a month to live with the rents (partner not working means i have to foot all bills obviously) and all other things that i need to pay. As there are 2 of us, i would assume that number would be doubled, only fair that we both get the same amount (or is that wrong)?

Thanks in advance

Andy 




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Re: [LondonOpenCoffee] Funding -- 'acceptable' salary for founders

chencho-2
In reply to this post by chencho-2
If you only ever support completely self funding entrepreneurs you are limiting who you can invest in.

Founders should have some skin in the game for sure.

They should not hurting a bit, but not too much.

If the founder is worrying about how to feed their kids / support their family then he/she will not be focussed on the business they are supposed to be building (to deliver shareholder returns).  

If the founders are splitting their time they are not focussed on the business, they have a back up plan, this is a side gig.


Rick Brownlow
Co-Founder, CEO



On Thu, May 10, 2018 11:05 AM, Andrew Lockley [hidden email] wrote:
I think founders are better when they're self sustaining. You can probably find an income by splitting your time.

Entrepreneurship is what happens when there's not enough time and money. If there's enough of both, you're just a manager! :) 

A

On Thu, 10 May 2018, 11:01 andrew davey, <[hidden email]> wrote:
Morning all, 

I'm in the process of dipping my toe back into the startup world having spent the last year working for the man and being bored silly. My previous company stuff was bootstraped and revenue generating from the get go, so i never needed to worry. But for this new project i'm toying with the idea of getting some seed funding to get me going and hit some growth early. 

But now i'm an adult with adult responsibilities (i.e. i have a child on the way) my outgoings are much higher than in the past. (rent @ 2k a month, personal bills and debt at 1k and i need to spend on food etc...). As such more of the funding would be put to founder salaries than say 10 years ago. But i'm conscious that funders dont really want to pay founder salaries, they'd rather spread the cash somewhere else. (At least that's my understanding) 

My questions i guess are:

1. Lets say i'm looking for 100k and there are two founders, how much of that money is acceptable to say "this is for founders to work full time and not have to work anywhere else and get stressed"
2. If i said this is for 6 months run rate, would they be more agreeable? 

In terms of actual numbers, as intimated above, odds are i need around £4k a month to live with the rents (partner not working means i have to foot all bills obviously) and all other things that i need to pay. As there are 2 of us, i would assume that number would be doubled, only fair that we both get the same amount (or is that wrong)?

Thanks in advance

Andy 




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