Entrepreneurship Tips

What Is A Reasonable Salary For Early Founders When Raising Outside Capital?

Posted by Robert Norton on

What Is A Reasonable Salary For Early Founders When Raising Outside Capital?

A reasonable salary for any CEO or founder is a $100K to $200K today. This depends on their experience and market value which could easily be $500K+. A CEO with ten years in that seat is worth $300K to $500K base salary, but investors want them to have skin in the game and urgency too. Like a salesperson you never pay them enough in base salary to be totally happy, or financially comfortable. Stock value should be the main long-term motivation. At 20% capital gains tax, not 50%+. What is more important is that the base salary is a small...

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What Are The Benefits of Bootstrapping or Self-funding A Startup Instead of Accepting Outside Investments?

Posted by Robert Norton on

What Are The Benefits of Bootstrapping or Self-funding A Startup Instead of Accepting Outside Investments?

Typically, you cannot get outside funding until you have developed some team, plans and an MVP product (minimum viable product or prototype) from serious investors. People are misled by headlines thinking they can raise millions from outside investors with none of these. That only happens if you already made other investors rich, in which case it is likely you would fund your startup’s seed stage yourself to prevent early dilution. Over 80% of startups fail because the founders underestimate the skills and team required. There are about 40 skills sets needed to build a scalable startup. Usually this requires a...

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What are the Most Common Mistakes that Entrepreneurs Make?

Posted by Robert Norton on

What are the Most Common Mistakes that Entrepreneurs Make?

Here is a short list of others, because there are hundreds: Assuming you can raise capital before you have a product, most cannot. Not building a team of 2–3 founders who can work for cheap or free for a year. You need this to build an MVP. This team needs marketing, sales and technical skills, not just product development, as the vision needs to be complete with a sales and marketing plan that requires senior expertise. Not doing sufficient market research and competitive intelligence to understand the target market and customer. Many are so paranoid of their idea being stolen...

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What is Your Resource Saving Tip for Individuals?

Posted by Robert Norton on

What is Your Resource Saving Tip for Individuals?

  According to this source, resources needed from the planet will be exceeded by human demand this August. I guess this means more people starve and suffer soon. I find most corporate ESG initiatives to be all PR and no real meat or commitment. What are you doing to reduce the human footprint on the planet?  So many easy things every individual can do. Interestingly, I learned today from a related chart you can see at link below that almond milk uses 40.9% less water than cow's milk. And my doctor recommends it for less cholesterol, too. These easy choices...

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Can a CEO of a Company Take Money from His Own Company that He Owns Privately?

Posted by Robert Norton on

Can a CEO of a Company Take Money from His Own Company that He Owns Privately?

Sure, as long as they own 100% of the stock, they can do pretty much anything they want, within tax laws of course. They can pay themselves any salary, issue dividends, make a loan to themselves, etc.  However, the minute one other person owns one single share of stock, this changes dramatically. Now they have what is called “A fiduciary duty” to the other shareholder(s) to do only things that are in the best interest of the company. This has a very high legal standard called “Utmost good faith”. And if you violate this principle, then you can be sued...

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