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A founder's salary can vary widely depending on a number of factors, including the type of business, the success of the business, the industry, the funding, the size of the business, the location, and the founder's individual decision-making process. Here are some aspects that should be considered:
Early stages: In the early stages of a startup, founders often take a minimal or no salary, as the priority is to build the business and secure capital.
Funding: If the startup is successful in obtaining capital from investors or venture capital firms, founders may more often take a salary to support themselves.
Ownership stake: Founders often retain a significant stake in the company and can benefit from increasing company success through the value of their equity.
Company size: Depending on how the company grows, founders may later be able to earn competitive salaries closer to those of executives at established companies.
Industry Differences: Founder salaries vary widely by industry. In some industries, such as technology and biotechnology, founders can command higher salaries due to the high growth potential and capital investment.
It is important to note that many founders forgo a higher salary in the early years to help grow their business. They may be considering the long-term value of their business and the opportunity to benefit from a potential exit event.
Founders' salaries are highly individualized and can vary widely. Some founders prefer to invest the company's financial resources in growth, while others are able to earn competitive salaries at later stages of the business.