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It sounds like it is still pretty early in the game ($2 million A round, 15 people), so lack of profit shouldn't be an issue (did you mean revenue?). If you don

by byoung2 12y ago

It sounds like it is still pretty early in the game ($2 million A round, 15 people), so lack of profit shouldn't be an issue (did you mean revenue?). If you don't feel like the business will be on the path to success (equity means nothing) or you are not willing to take the risk, then you should quit today and just go work somewhere that pays more and is stable (BigCo). If you feel like the potential upside from equity say 5 years out is worth the tradeoff in salary now, then you should stay.

seekingcharlie 12y ago
Yes, we're generating about $1,000 per month revenue. Given the funding in particular, I expected there to be room to move in terms of my salary & I'm disappointed that there isn't right now. Is 'we can't afford it' an appropriate response at this stage of the company?
- marquis 12y ago
  It's really hard being a founder, and as bosses what we want more than anything else ever, is to pay our staff more. It's the number one thing after customer satisfaction. If you aren't invested in the company or the lifestyle or are expecting a decent payout, your boss will understand if you decide to leave.
- trcollinson 12y ago
  Just do the simple math. Your company received $2mm months ago and has 15 employees. This is ~$134,000 per employee for a year. We'll imagine they will push towards a Series B round within 12 months. They are receiving $1,000 per month in revenue. I'll assume you mean gross revenue here, net would be a different calculation entirely. With that math in mind, imagine the salaries, benefits, employer paid taxes, equipment cost, and office (per employee). Assuming that is 100% of their costs (we didn't even talk about infrastructure costs, marketing, accounting, legal and the meriad of other costs associated with running a startup), does this add up to more than ~$134,000 per year per employee? I would imagine the answer is yes. So, yes, they can't afford to give you more. Frankly, they can hardly afford the employees they have now. In my view, that's a really tight budget. What should you do? Well that is a really personal question. If I were you, I would decide if you would like to stay or not, but don't blame them for being good at figuring out the math of the situation. They are on a shoestring budget, I have zero doubt of that. I would most certainly tell you that "we can't afford it" right now, if I were them. Now, if they are making $1,000 per month net revenue, then they are profitable. That would be a different situation entirely and they could actually give you more.
  - jmalicki 12y ago
    Net revenue isn't operating income - it does not include engineering or administrative expenses, where as net income does. So even with net revenue, they would not likely be profitable.

by byoung2 12y ago

seekingcharlie 12y ago

Yes, we're generating about $1,000 per month revenue. Given the funding in particular, I expected there to be room to move in terms of my salary & I'm disappointed that there isn't right now. Is 'we can't afford it' an appropriate response at this stage of the company?

marquis 12y ago
It's really hard being a founder, and as bosses what we want more than anything else ever, is to pay our staff more. It's the number one thing after customer satisfaction. If you aren't invested in the company or the lifestyle or are expecting a decent payout, your boss will understand if you decide to leave.
trcollinson 12y ago
Just do the simple math. Your company received $2mm months ago and has 15 employees. This is ~$134,000 per employee for a year. We'll imagine they will push towards a Series B round within 12 months. They are receiving $1,000 per month in revenue. I'll assume you mean gross revenue here, net would be a different calculation entirely. With that math in mind, imagine the salaries, benefits, employer paid taxes, equipment cost, and office (per employee). Assuming that is 100% of their costs (we didn't even talk about infrastructure costs, marketing, accounting, legal and the meriad of other costs associated with running a startup), does this add up to more than ~$134,000 per year per employee? I would imagine the answer is yes. So, yes, they can't afford to give you more. Frankly, they can hardly afford the employees they have now. In my view, that's a really tight budget. What should you do? Well that is a really personal question. If I were you, I would decide if you would like to stay or not, but don't blame them for being good at figuring out the math of the situation. They are on a shoestring budget, I have zero doubt of that. I would most certainly tell you that "we can't afford it" right now, if I were them. Now, if they are making $1,000 per month net revenue, then they are profitable. That would be a different situation entirely and they could actually give you more.
- jmalicki 12y ago
  Net revenue isn't operating income - it does not include engineering or administrative expenses, where as net income does. So even with net revenue, they would not likely be profitable.