Too little hurts you. Too much hurts your startup. So where’s the line?

A founder once told me:

Another drew ₹2.5 lakh/month early on.

Your salary as a founder is more than a number.

It signals how you think about discipline, priorities, and sustainability.

Paying yourself isn’t wrong.

But ignoring the why and how of that pay? That’s dangerous.

Let’s explore how to decide what’s fair—both to your personal life and to your business.

Step 1: Know What Your Salary Signals

To investors and your own team, your salary tells them:

• How much personal skin you have in the game

• Whether your lifestyle is aligned with your company’s stage

• How disciplined your financial operations are

• If you're prioritizing long-term sustainability over short-term comfort

High salary too early? → Perceived as entitlement

Zero salary for too long? → Signals poor planning or future burnout

The goal is balance, not sacrifice.

Step 2: Benchmark Based on Stage, Not Ego

Here's a rough framework:

Adjust based on:

• Geography (Tier 1 vs Tier 2 city)

• Team size (especially if you're covering multiple roles)

• Personal runway (can you survive without drawing for 6–12 months?)

It’s not about what you want.

It’s about what your business can afford—without stress.

Step 3: Avoid the All-or-Nothing Trap

Some founders delay salary until a big fundraise. Others overpay themselves early.

Smart founders:

• Take a baseline salary to cover living expenses

• Reinvest the rest through sweat equity or performance-linked bonuses

• Revisit annually or after major fundraising/traction milestones

Think of it as:

And yes—pay yourself on time. Late salary is a quiet stressor.

Step 4: Justify It Like an Investor Would

Investors won’t flinch at a founder drawing ₹1.5L/month… if:

• You’re building, shipping, and selling

• Burn is under control

• Other core team salaries are balanced

• You’re not drawing bonuses without profits

But if they see:

• ₹3L salary and ₹0 revenue

• No clear roadmap to reduce dependency on investor funds

…they’ll wonder if you're building a company or funding a lifestyle.

Build a salary story you’d fund if you were on the other side of the table.

Step 5: Tie In Upside (Not Just Cash)

If your startup can't afford market pay:

• Offer ESOPs to yourself with vesting

• Define performance-linked raises after hitting revenue or growth milestones

• Set a salary review after each fundraise or profitability milestone

Remember: salary is short-term cash. Equity is long-term wealth.

Structure both intentionally.

TL;DR – Too Long; Didn’t Read

• Founder salary isn’t charity or greed—it’s strategic survival.

• Benchmark based on stage and burn, not ego.

• Take a baseline salary to stay functional and sane.

• Investors care about balance, not sacrifice or excess.

• Tie raises to business milestones—and cap early burn risk.

Your salary isn’t about what you “deserve.”

It’s about what keeps you clear-headed, committed, and cash-disciplined.

Don’t starve yourself to prove you care.

But don’t treat your startup like a piggy bank either.