1 week ago

Startup Founder Urges Entrepreneurs to Pay Themselves Modest Salaries

Startup Founder Urges Entrepreneurs to Pay Themselves Modest Salaries
‘Self-deprivation isn't a business model’: Startup founder urges entrepreneurs to pay themselves, bootstrapped or funded · livemint.com

Vinod C says startup founders should pay themselves some money.

He believes working for years without any salary should not be celebrated.

Founders still need money for rent, food and family needs.

The salary does not have to be large.

It should be an amount the company can reasonably afford.

He suggested examples such as ₹25,000 or ₹50,000.

He also said founders should usually earn less than they could make elsewhere.

His main point is that founders should avoid burning out while building a business.

Key facts

Founder
Vinod C, co-founder of Naturally Yours
Suggested salary examples
₹25,000 or ₹50,000, depending on what the company can afford
Salary principle
Founder pay should remain reasonably below comparable external market rates
Reason cited
Founders still have rent, grocery and family responsibilities
Business concern
Zero salary can create an artificially low picture of company expenses
Startup brand
Naturally Yours produces healthy noodles and pasta
Product claims
The brand says its products use whole grains and superfoods and avoid MSG, artificial flavours and preservatives

Quotes

A LinkedIn user

Commenter responding to Vinod C’s LinkedIn post

“Paying yourself a sustainable salary creates a clearer picture of the actual cost of running the business and makes it easier to evaluate whether the company is genuinely healthy, rather than relying on an artificially low expense base. Good financial decisions start with accurate numbers,”
livemint.com
“Whether you are bootstrapped or funded, building a startup does not require you to financially punish yourself. I see founders proudly saying: ‘I haven't taken a salary for 3 years.’ I don't think that's something we should glorify”
livemint.com

Sources

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