How much should an entrepreneur get paid when they raise their first bit of capital?
The first answer to this is something. No savvy investor wants a founder to be destitute, stressed about money and ultimately distracted by side-jobs that are required to pay the bills.
So how much should a founder pay herself?
I think there is a sweet spot for early-stage salaries. It’s simply the amount of money where the founder doesn’t need to think about money (or be concerned), but at the same time it’s not enough for the founder to be saving. It’s the point where costs are covered, but there is no surplus.
So, how much is that? It depends on the person, their family situation, their lifestyle and beyond. In my experience, however, is that it’s less than most people initially think. Run the numbers and you’ll know.