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This just seems condescending. Work of almost all employees is “crucial” and “has to do with the actual startup itself” at an early stage. My experience with c

This just seems condescending. Work of almost all employees is “crucial” and “has to do with the actual startup itself” at an early stage. My experience with companies that don’t realise this is that they rapidly deteriorate because of a poor perception of value within the business. Setting that aside, all employees at a startup take additional risk. Startup work is frequently harder, more complex, more time- and life- consuming than BigCo work, and runs a higher risk of suddenly coming to a stop when funding runs out. If I am going to come and work for your startup, I will need one of a couple of things: - The same pay and conditions I will get at a more established employer, including the expectation of value added, or - A higher salary to compensate for the additional work and risk of a startup, or - Equity to compensate for your inability to pay a higher salary, or - In a very rare case, the fact that you are working in a particular field, area, or cause, for which I’m willing to accept lower rewards in order to participate. Employment should as much as possible be a transactional process. Offer money in exchange for work and risk; if you can’t offer money, offer something else to compensate. Equity is a reasonable tool for cash-strapped startups.

dustinmoris 7y ago
Please remember, I am not saying people should not be seen as important or valuable, or not get compensated fairly. I am very much advocating ALL of that. But, when it comes specifically about giving away ownership of one's business, then I think there must be a good reason to do just that, because just being a great employee and doing a good job is IMHO not a reason to give away ownership. That's two different things. Please I am all up for everyone getting paid great salaies, getting amazing perks and what not, but ownership of the business should not be easily given away like that.
- matthewmacleod 7y ago
  Ownership of the business is just a token of value that you control. If you can compensate everyone with adequate salaries—that means, higher than the equivalent at more stable companies—then that is totally fine. If not, then exchanging some of your control instead is a totally valid thing to do, and weird preconceptions about “your own blood and sweat” are just silly things to care about. Frankly higher salaries are my preferred option and one I would always push for, for both myself and others, if possible - equity is essentially valueless at an early stage anyway.
avip 7y ago
Your arguments may be appealing, but looking back at your startups - did the receptionist, tech support or janitor receive options? Were they even employees?

dustinmoris 7y ago

Please remember, I am not saying people should not be seen as important or valuable, or not get compensated fairly. I am very much advocating ALL of that. But, when it comes specifically about giving away ownership of one's business, then I think there must be a good reason to do just that, because just being a great employee and doing a good job is IMHO not a reason to give away ownership. That's two different things. Please I am all up for everyone getting paid great salaies, getting amazing perks and what not, but ownership of the business should not be easily given away like that.

matthewmacleod 7y ago
Ownership of the business is just a token of value that you control. If you can compensate everyone with adequate salaries—that means, higher than the equivalent at more stable companies—then that is totally fine. If not, then exchanging some of your control instead is a totally valid thing to do, and weird preconceptions about “your own blood and sweat” are just silly things to care about. Frankly higher salaries are my preferred option and one I would always push for, for both myself and others, if possible - equity is essentially valueless at an early stage anyway.

avip 7y ago

Your arguments may be appealing, but looking back at your startups - did the receptionist, tech support or janitor receive options? Were they even employees?