Comments on: How to Save Money During the Early Days of a Startup http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Sat, 11 Feb 2012 21:46:28 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Mark http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-47877 Mark Thu, 15 Apr 2010 04:16:41 +0000 http://www.mint.com/blog/?p=8746#comment-47877 I believe your first point...focus on the ROI of Each Customer, is the most salient point made in the entire article. Great advice! Thank you. I believe your first point…focus on the ROI of Each Customer, is the most salient point made in the entire article. Great advice! Thank you. ]]> By: enrique http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-47294 enrique Fri, 02 Apr 2010 03:06:47 +0000 http://www.mint.com/blog/?p=8746#comment-47294 Regarding below market salaries, I think they are appropriate only for the founding team. Any hire not considered founder should get paid fair market value. Note that market value depends just on that: the market. This means that as an example if you are a RoR developer, you will expect to get paid whatever your local startup market is paying. We are trying to hire developers at cofounder level and have found that it takes a very special person to plunge in a below market rate buying into other's dream. Good people have many options. Thus they would have to see real upside for accepting below market terms. Real upside usually comes with significant equity, or accrued salaries covertible to shares. My $0.02. Regarding below market salaries, I think they are appropriate only for the founding team. Any hire not considered founder should get paid fair market value. Note that market value depends just on that: the market. This means that as an example if you are a RoR developer, you will expect to get paid whatever your local startup market is paying. We are trying to hire developers at cofounder level and have found that it takes a very special person to plunge in a below market rate buying into other’s dream. Good people have many options. Thus they would have to see real upside for accepting below market terms. Real upside usually comes with significant equity, or accrued salaries covertible to shares. My $0.02. ]]> By: Dan Martell http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46294 Dan Martell Mon, 08 Mar 2010 23:43:12 +0000 http://www.mint.com/blog/?p=8746#comment-46294 It's SOOO emotional - this tips were more mechanical. At the end of the day, for most - it's about starting ;-). Best way to learn. "You can't learn how to surf by reading a book" @danmartell It’s SOOO emotional – this tips were more mechanical. At the end of the day, for most – it’s about starting ;-) .

Best way to learn.

“You can’t learn how to surf by reading a book”

@danmartell

]]> By: Dan Martell http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46293 Dan Martell Mon, 08 Mar 2010 23:41:14 +0000 http://www.mint.com/blog/?p=8746#comment-46293 Anon, I agree with what you're saying - however I stand firm on my advice to never pay market rates for your first few hires. There's more to a position then compensation, and if you're building a great company, then things like opportunity, responsibility, experience, etc... should be considered. On that note, I do think equity is a powerful solution, however only when done properly (with full disclosure). Equity in a company that isn't venture backed isn't a good option. Dan @danmartell Anon,

I agree with what you’re saying – however I stand firm on my advice to never pay market rates for your first few hires. There’s more to a position then compensation, and if you’re building a great company, then things like opportunity, responsibility, experience, etc… should be considered.

On that note, I do think equity is a powerful solution, however only when done properly (with full disclosure). Equity in a company that isn’t venture backed isn’t a good option.

Dan
@danmartell

]]> By: James http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46202 James Fri, 05 Mar 2010 14:13:18 +0000 http://www.mint.com/blog/?p=8746#comment-46202 I have to say I agree with Anon! Sounds to me like you are advising companies to dupe young, naive workers like myself into getting taken advantage of. Seems like a really great way to piss off the people that help you start your company and disenfranchise them in a hurry. I'm all for working for equity, but I think the people willing to take a chance with you and help you grow something should be rewarded not treated like second class citizens. I have to say I agree with Anon! Sounds to me like you are advising companies to dupe young, naive workers like myself into getting taken advantage of. Seems like a really great way to piss off the people that help you start your company and disenfranchise them in a hurry.

I’m all for working for equity, but I think the people willing to take a chance with you and help you grow something should be rewarded not treated like second class citizens.

]]> By: Frank Timis http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46122 Frank Timis Wed, 03 Mar 2010 10:33:37 +0000 http://www.mint.com/blog/?p=8746#comment-46122 I don't agree with few of your comments, however in general the most importnat thing is to focus on spendings and cut the costs to minimum, choosing the best given qutes and wait for the revenue I don’t agree with few of your comments, however in general the most importnat thing is to focus on spendings and cut the costs to minimum, choosing the best given qutes and wait for the revenue ]]> By: Abel http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46099 Abel Tue, 02 Mar 2010 22:55:12 +0000 http://www.mint.com/blog/?p=8746#comment-46099 It is pretty common knowledge in the high tech industry that certain people are orders of magnitude more productive than others. If you need to skimp on compensation, you will be less likely to get these people on board. Sure, equity can compensate to some effect, but more experienced (=older) people generally have higher expenses (=mortgage, family, ...) which means their absolute minimum salary will be higher than recent college graduate. Now ask yourself: would you rather hire two college graduates, or someone with 10+ years of experience with demonstrated ability to ship successful, high quality software, to design your new fancy system from the ground up? It is pretty common knowledge in the high tech industry that certain people are orders of magnitude more productive than others. If you need to skimp on compensation, you will be less likely to get these people on board. Sure, equity can compensate to some effect, but more experienced (=older) people generally have higher expenses (=mortgage, family, …) which means their absolute minimum salary will be higher than recent college graduate. Now ask yourself: would you rather hire two college graduates, or someone with 10+ years of experience with demonstrated ability to ship successful, high quality software, to design your new fancy system from the ground up? ]]> By: anon-e-moose http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46098 anon-e-moose Tue, 02 Mar 2010 21:09:12 +0000 http://www.mint.com/blog/?p=8746#comment-46098 "... there are hundreds, if not thousands, of YOUNG, able and energetic individuals with the skills necessary to get the job done. ..." Thank you for perpetuating the pervasive ageism/age discrimination that is particular rampant in the high tech industry. Shame on you ... “… there are hundreds, if not thousands, of YOUNG, able and energetic individuals with the skills necessary to get the job done. …”

Thank you for perpetuating the pervasive ageism/age discrimination that is particular rampant in the high tech industry.

Shame on you …

]]> By: Increase Your Customers http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46095 Increase Your Customers Tue, 02 Mar 2010 20:39:00 +0000 http://www.mint.com/blog/?p=8746#comment-46095 Great article, advice should be really helpful to those just starting up, its things like these that are overlooked. Great article, advice should be really helpful to those just starting up, its things like these that are overlooked. ]]> By: George http://www.mint.com/blog/investing/how-to-save-money-during-the-early-days-of-a-startup/comment-page-1/#comment-46086 George Tue, 02 Mar 2010 15:26:27 +0000 http://www.mint.com/blog/?p=8746#comment-46086 This is a really good article and I think you highlighted a lot of important points, some of these issues are exactly what we're dealing with right now with Jippidy. Specifically, we're starting to puts customers in different buckets base on our analysis of their profit margin or magnitude of their revenue (this include payback period). Additionally, being boostrapped we're still trying to figure our how to balance the "sales" problem you mentioned with other issues such as customer acquisition. All in all, this was a good issue to tackle. This is a really good article and I think you highlighted a lot of important points, some of these issues are exactly what we’re dealing with right now with Jippidy. Specifically, we’re starting to puts customers in different buckets base on our analysis of their profit margin or magnitude of their revenue (this include payback period). Additionally, being boostrapped we’re still trying to figure our how to balance the “sales” problem you mentioned with other issues such as customer acquisition. All in all, this was a good issue to tackle. ]]>