Do you need an investor to help float some of your personal expenses (like paying a salary) while you get your new idea up and running? Well forget it - investors have no interest in paying your salary.
Founders get paid last, that's the way it works. Although there are some instances where a Founder can draw a small salary in a going concern, the idea of getting paid to build your business is a complete farce.
3 Reasons Why Investors Won't Pay Your Salary:
1 . They don't have to - Investors can find plenty of deals to fund where a Founder will work for free or is already paid by the business. They have options, and paying your salary doesn't have to be one of them.
2. That's your job - Founders get paid the most when the company grows or gets sold, and the least when it's getting started. Their ownership stake is considered to be their paycheck. It's generally accepted that the Founders will take the least amount of pay (if any) in order to see the company grow. It sucks, but it's the way it works.
3. Hungry = Motivated - A hungry Founder is a motivated Founder. A Founder that's getting a full salary can afford to go home at 5:00, forget about work for a while, and spend time with their family. A Founder that doesn't know how they are going to pay their mortgage next month will never forget about their startup company. Instead of hoping that an investor will pay your bills while you build your dream, focus on how to manage your time and expenses so that you can build the company without needing an investor.
550,000 new businesses are started every month in the U.S. alone - people figure out how to do it without investors.