How Should entrepreneurial teams allocate compensation?

To talk about the treatment of entrepreneurs, we must first clarify two things. First, are you the founder or the founding team that jointly initiated the incident? If yes, it will usually trust the long-term return and be willing to accept the low salary in the short term. For example, my partner and I both said that it would be good to get the basic living expenses. In an emergency, don't get the money or even pay the money.

Second, are you the first entrant to the startup team? Or the second, third, fourth, and fifth batches? The sooner you join the company (because the company has insufficient capital), the lower your salary is usually, but you can receive more options or lower exercise price. It is equivalent to using personal risks for long-term return.

I have consulted entrepreneurs and heard a lot about salary. Some people say that they can only receive the first 70% at most. Some people say that 70% is too high, and 50% is almost the same, some people say that the treatment should not be honest with the brothers-but it is only a medium level for medium-sized companies.

(In this case, most of them will be stabbed by others, and they feel that the capitalist's heart is really dark)

From another perspective, if you like the project, the team can also get together, the management is very friendly, the task is properly authorized, the working atmosphere is good, the environment is good, and the development prospects are good, in the end, we can still get the salary of a large front-line company. This is the perfect final result of a 10 thousand yuan invoice. If I can get to this status, what else do I quit? What do I create ......

Entrepreneurship must bear three types of risks. Capital risks are usually digested by venture capitalists; personal brand risks are usually digested by the founders; income risks are usually digested by all entrepreneurial teams. Of course, these risks are rewarding-if the business starts smoothly.

Taking the benefits as an example, the option for the entire initial team is basically a rule. If you start a business smoothly, I think the reasonable return on options is "1-3 times the normal salary", which is equivalent to 10 k monthly salary you think you have joined the entrepreneurial team for 2 years, in this case, the option income is balanced between and, so we do not consider abnormal ending situations such as listings or high-price acquisitions. The risk corresponding to this benefit is that in the initial stage, only "50%-70% of normal salary" is taken ".

To put it completely, you must first look at your original income for the above salary reduction margin. For example, if you get only 5 K, not only is it not high or even low, then there is no need to cut the salary. However, if I had received 20 K jobs before, I could not afford to start my own business. If I had to pay less, the labor cost would soon have sunk into the ship. Everyone drowned in the water.

I suddenly wanted to write this topic because I had two friends from two very well-qualified big companies who were waiting for the annual salary of 20-30 thousand. Both of them are very competent. I believe they are worth this value in big companies. However, my reply and suggestion are that they can start their own business rather than join a team initiated by others. If the project is self-led and with confidence and expectation, it is easier to cut your income to control costs and extend the use time of the first financing.

If you team up a team based on the value of a large company, even if it is only a team of seven or eight people, the labor cost for one year will soar to more than 2 million (+ 4 gold). In addition to other costs, at least 3 million will be burned in a year, the cost for the 18-month period is 5 million-Frankly speaking, according to the current situation, I am afraid it is difficult to talk about this angel investment. In addition, it is hard for VC to trust you and feel that there is a preference of hedonism. It is not like a startup.

What is entrepreneurship? I think at least one thing is that I believe that the return is in the future, not the present. The current sacrifice will return several times the future returns. Besides, this kind of sacrifice is only temporary. For example, if a round of financing is received in 6-18 months, it is usually 20 millions or 30 millions RMB, and the full salary can be adjusted back to the normal level. After calculating the options, we found that the empty check had already been worth several 100,000 yuan, and the C-round company's valuation doubled with the B-round and continued to increase.

At the beginning of the business, my family was very thin. The prospect of using risk exchange is almost a law. There is no extra benefit without taking risks, but it is common to make a hard effort in the end. Stable, well-paid, and beautiful environment are the advantages of big companies-the opposite is true for startups. It is closer to the treasure hunt pirate adventure, and the probability of losing is far greater than the probability of winning. This may be why we want to accept drought and flood, but it is neither a startup mentality nor a cost that the startup team (Angel wheel) can afford.

So when I talk to my friends, the most I talk about is the project itself. You can ask me more questions about the product. The motivation for joining this entrepreneurial team is not only your yearning for entrepreneurship, your trust in me and quake, but also the feasibility evaluation of the project. I hope that you will think that the probability of a smooth journey is high and a pleasant journey after carefully balancing various risk factors. Naturally, having "Confidence" also means that you pay more attention to the future than the present.

Today, I talked to a friend who contacted me about salary over the phone. The value I can accept is a little lower than her previous salary. Fortunately, it is not much lower, only 1 k less, but the year-end bonus will be much less. I explained that if you get the round in 6-18 months, the bonus is not a problem. If you don't get the round, we will get down ......

What's more important than the empty-checked vision is whether your long-cherished entrepreneurial experience deserves your own short-term salary reduction. To be honest, there are too few entrepreneurial successes and too many failures. I really don't want to draw the pie "option/financing/listing/making a fortune" with you. For example, I chose to start my own business and invested 100,000 yuan in it. The monthly salary is less than the previous 1/3 yuan. Do I have the confidence to win? Of course not. I just want to pursue a Quick Start experience and do what I like freely. Yes, "freedom" is almost the only advantage of a startup company. After being "Bundled" for a long time in a magnificent company, we can understand the value of freedom. How much risk and cost are you willing to take for this adventure?

Some days ago, an old friend told me that high salaries are actually shackles. His salary is higher than mine. It's hard to get his salary (psychologically). His income is less than he used to be. But at the same time, this also limits your choice. You must make more money, and you must make progress ......

Is earning more money the most important thing in your life?

When I ask this question, most people may give a negative answer. But thinking is one thing, making choices is another thing. Therefore, a high salary is indeed a shackle, making your career choices narrower and more tangled.

So far, it must be clarified that late-night talk is not meant to reduce the price. For friends with an expected annual salary of 20-30 thousand, my sincere suggestion is that they initiate their own business, or join another mature entrepreneurial team that may already have B round. The latter may offer a salary equivalent to that of a large company at a lower cost of options, higher exercise prices, and the loss of the opportunity to cultivate a product from scratch. The first five entrepreneurial members decide the product temperament, fate, and team culture. This happiness may not be valued by everyone, it may not be worth your consideration. However, it is precisely because people with special emphasis on "family members" can experience the most exciting entrepreneurial journey. Taking my current product direction as an example, a companion who joins after 20th is equivalent to "traveling with a group ". What is the difference between a group and a self-help tour.

There is no conclusion. I just felt deeply at midnight. A foreign tech blog author wrote: "Why do you like entrepreneurship? Because we are a group of stupid pirates ." When I saw this sentence, I had a broken big stone in my chest.