Pay Yourself Based on Industry Standards
- It’s better for you financially. By receiving a full salary or one close to industry norms, you make less of a sacrifice now.
- It prepares the company for the future, rather than protecting it. Your company could have less of an adjustment when it becomes more profitable and would be expected to pay a higher salary.
- It could be financially draining for the company. The first goal for your company is to survive. After the first year or two, you can focus on building and growing.
- Unrealistic expectations. It could be unrealistic to expect a new startup company to pay ‘industry-norm’ salaries.
Is it important for you to send a signal to investors and/or colleagues or peers about your level of compensation?