Simple question: How much do you pay yourself after a small seed round of $250,000? Does it change much once you raise your first A series surpassing the Million dollar mark?
The best the business can afford that wont hurt in any way, at any stage.
You understand your financial commitment as well as mileage to your traction!
You may even need more money to become profitable before paying yourself!
Investors are always interested in your commitment in terms of finance as well as other resources!
Whoever invested in your startup probably understand the numbers more than you think and the way you use the fund will make or mar your next round of financing!
Best of luck in your sojourn to outstanding success!
Have you raised the 250k?
@chikauwazie, you should pay yourself based on gross revenue. The global labor industry payroll percentage is 14%. The highest percentage is Restaurants/Hospitality which is 30%.
So going by the labour industry average, you should only spend 14% of your gross revenue on payroll across your organization (From CEO to clerks).
With new $250,000.00 raised, I believe you should work with the projected annual revenue.
Based on your post funding projected revenue, apply your preferred payroll percentage and adjust your salaries across the organization.