Mike Casey :: Random thoughts on Startups |
Random thoughts about Start-ups in Australia and around the world. Probably wrong but whatever. |
Paying yourself first is an interesting concept pawned by a psuedo mentor of mine back in Wellington. Essentially it means that your startup starts paying the founders from day one. If you have startup capital, then that money is put in the company and slow feed to the founders as income. If you and your partners still have a job, then the 100% of that money goes into the company, and then the company pays the founders.
Pay yourself first means that the company becomes hugely important to all the founders, even if they have secondary jobs to cover life. It gives the company control and also puts all founders on a level paying field. If one of the founders is consulting, and the other is working at McDonalds, they still get equal income out of the company.
Remember, the most important thing to an early startup is the time its founders put in to making it work. So get the money issue out of the way as quickly as possible.
