Q & A: Answering Startup Questions From The Audience
In this episode of Startup Daddy , I answer questions from YOU. I really want to help you get your businesses started, and one of the ways I back that up with action is to invite you to send me your questions. I want this to be a conversation, not a lecture. A lot of people say that, but I mean it.
You send me your questions via email, leaving comments here, or by responding to my email newsletter. I read and answer every one of them personally. So I thought I would make an episode from some of the questions about topics that I am asked about often. I hope it helps you move your business forward.
Some of the links I refer to in this episode:
Productivity Books I Like:
- Getting Things Done: The Art of Stress-Free Productivity, by David Allen
- Seven Habits of Highly Effective People
- Zen To Done: The Ultimate Simple Productivity System, by Leo Babauta (ebook)
Business Registration Services:
(These are affiliate links- I make a few dollars if you go to LegalZoom from my link, and actually make a purchase)
- Legal Zoom- Trademark Research and Registration Service
- Legal Zoom- LLC Registration Service (Corporation Registration too)
Screen Capture Software:
- Jing– Free
- Camtasia Studio– Paid App with many more features and flexibility. There is a free trial, though.
Listen here:
DOWNLOAD the Mp3 of this episode.
So how about you? Do you have a question I can answer to move your business forward?
I thought this Q&A format went well. Since you used actual questions, they are even more relevant to the audience!
I thought this Q&A format went well. Since you used actual questions, they are even more relevant to the audience!
Salary question:
Hi there,
Love you work.
I’ve built in the past 6 – 12 months a solid business.
We employ 25-30 people.
Turn over ranges from $35-$60k per week.
Anyway equity (we arranged this before I read your book)
Other shareholders 55% (They had the idea, invited me to join, the network we leveraged to build the business initially also which was very important). I meet them once a week, and occasionally get advice. They were a bit more involved in the first months, but no more than 5 hours a week.
Me 45% (I’m the FULL TIME work guy, that took everything they had and turned from nothing into something), I gave up $140,000+ per year to run it and still do. I’ve worked well and truly more than 9-5 hours and took great risk.
We technically funded it equally proportionately to the shares which regardless of right or wrong, is what we did. I don’t intend to change the shareholdings as we move forward, we have agreed and I want to keep the peace.
Now, a tricky one for you.
For the first 14 months. I wasn’t getting paid by the business because it took a long time to get the model right. I got involved and free shares for this. Then for the rest of the shares I paid equally.
At 14 months I started getting $500 per week. (we had 15 staff earning $45k-50k per year each.)
At 16 months I started get paid equivalent to $50,000 a year. (we had 20 staff earning $45k-50k per year each.)
Now at 18 months (we are some weeks making between $10,000 – $20,000 profit). But market conditions are due to change next year so profit will go down and things will be tougher so I can’t depend on a dividend. As a result of this change it has made me want a salary to reduce financial pressure.
I was asking for $100k but my other shareholders (the 55% ones) thought that was excessive.
I think the shareholders are thinking too much of me as a shareholder and aren’t separating the fact i’m an employee from the fact I own shares.
As a result they expect me to work for less than I’d pay senior staff that work for us, because I’m a founder. I’m starting to struggle with this concept whereas in the early days I had no problems with it.
Our company can afford to pay me this 100k rate, but we are getting stuck and as partners we are disagreeing here.
The thing is, i’m the one who is still taking risks, earning below my market value and I feel like i’m starting to get a dud deal now that the company is semi established.
Obviously if the business stops making profit, i’ll have to dramatically rethink salary options, but our plan looks solid.
How much should I be asking for? Is it fair for me to ask for this salary increase now that we are a late stage startup and are profitable (even if for a while)?