When is an entrepreneur paid a salary?
We had a talk with the founders of mInvoice, Leadfeeder, Frankly Juice and Znipe.tv about the one challenge most entrepreneurs are faced with: When am I going to be able to pay myself a salary? Now, there are big differences from entrepreneur to entrepreneur, from company to company.
When opening a store and working in retail or going into the brick and mortar business the sense of making money will be more evident and apparent. In contrast, opening a tech start-up like Znipe.tv or Leadfeeder is a whole different ballgame. In these businesses you need to be far more patient about making money and being able to pay yourself a salary.
We asked the four entrepreneurs the following question, and their answers differ significantly:
After starting up your company, how much time passed, before you were financially able to make a salary payment for yourself?
Pekka Koskinen, founder & CEO Leadfeeder:
“I founded Leadfeeder in 2012 and during the first 4 years I lived from the money I made from my previous company. In 2016 Leadfeeder got seed round funding and I was then able to make the first paychecks for myself.”
Christian Bowall, founder & MD Frankly Juice:
“While we were starting up Frankly Juice, I was still running my company Frokostfirmaet, so, my salary was paid for by this company. I got my first paycheck from Frankly Juice one year after establishing the company.”
Erik Åkerfeldt, founder, co/CEO & CTO Znipe.tv:
“At Znipe.tv me and my founding partner both started out with our own money. About six months into this project we got our first investor on board, and shortly thereafter we received our first paycheck.”
Sonni Christine Jakobsen, founder & CEO mInvoice:
“I’ve been able to pay myself a salary from Day 1, due to three things: The severance from my former employer, the funding from the Norwegian government’s program Innovation Norway for phase 1 and 2 plus mInvoice’s first emission just 6 months after establishing the company.”