Tactical insights for first-time founders to outsmart the burn, the churn & the breakdown.

Hey Founder,

Let’s talk about the paycheck no one wants to admit they think about: yours.

You’ve heard the phrase: “Put on your own oxygen mask first.”

But most founders? They’re halfway to crash-landing, living on credit and cortisol, hiding behind a Slack status that says “crushing it.”

Underpaying yourself might seem responsible.

But it builds strain. And often? Resentment.

Overpaying too early? Risky for your credibility and your burn rate.

So this week, we’re diving into the tightrope every founder walks:

What does a fair, sustainable founder salary actually look like?

And what does that number signal to your team, investors and yourself?"

When ConvertKit hit $1M ARR, Nathan Barry paid himself $60K, well below market. Why?

To avoid robbing the business of momentum. Fast-forward: $30M ARR, and he’s still not the highest-paid person on his team.

Inspiring? Sure. But also: the exception, not the rule

Another founder I knew?

He went 30 months unpaid.

“Once we stabilize,” he said.

They hit $500K ARR, but he was maxed out on credit cards, energy, and motivation.

“It wasn’t the company’s burnout that killed us,” he told me. “It was mine.”

For every lean founder who wins, dozens burn out quietly.

Then there’s the other extreme: a founder I worked with took a $150K salary right after raising $1.2M.

One investor pulled out.

“I don’t fund lifestyles.”

No Series A. No second chance.

Your salary tells a story, to your investors, your team, and yourself.

Get that story wrong? Trust erodes fast.

Underpay too long and you lose clarity, focus, and stamina.

Overpay too soon and you send the wrong signal, one that might cost you your next round.

Need proof?

Dan Price, CEO of Gravity Payments, famously slashed his own salary from $1.1M to $70K and raised everyone on his team to $70K.

The result? Viral headlines, turnover cut in half, and revenue tripled.

Founder compensation is never just a number.

It’s positioning. It’s messaging. It’s psychology.

So let’s break it down. Step by step.

But first, let’s get the perspective right.

(on a lighter note) An average founder’s self-expectation:

Founder pay isn’t just a line item, it’s a message.

But it’s also: your rent, your baby’s diapers, support for aging parents, your student loans.

So when you ask, “Should I pay myself at all?” or “How much is right?”

Know this: there’s no universal answer. Just trade-offs.

Your compensation should reflect your stage, your structure, your cash flow and your personal reality.

Before you underpay out of guilt or overpay out of fear, talk to a startup-savvy CPA.

Your legal setup (LLC, S-Corp, C-Corp) has tax implications. So does how you pay yourself.

What seems responsible now could become a liability later.

If you're early-stage without a financial cushion:

Aim for Ramen Profitability, just enough to cover essentials like rent, food, insurance.

It’s not glamorous, but it keeps you building without burning out.

📍 Airbnb’s founders set a $4K/month goal to stay afloat while chasing product-market fit.

If you’ve had a previous exit or solid savings:

You can afford to take a minimal salary and let equity carry the upside.

📍 YC partners take just $24K/year.

📍 Kunal Shah (CRED) pays himself ₹15K/month (~$180).

But key context: their survival’s already handled.

The takeaway? Match your salary to both your stage and your personal runway.

1. Know Your Minimum Viable Salary

List only your essential monthly expenses, rent, food, healthcare, insurance, debt, basic savings.

This is about staying afloat, not your market rate.

📍 One founder took $2.5K/month to avoid using credit. Her co-founder took $1K, he didn’t pay rent.

Fair ≠ equal.

2. Model the Impact on Runway

Plug different salary levels into your forecast.

📍 What does $5K/month vs. $8K/month do to your runway?

📍 Would your company still be “default alive” if you paid yourself market rate?

If not, pull less but not zero.

3. Set Triggers

Tie salary increases to business milestones.

📍 $20K MRR = $3K/month

📍 $50K MRR = $5K/month

Take the emotion out. Revisit it quarterly.

4. Talk About It Early (and Document It)

Founder comp surprises create friction. Set expectations with co-founders or your board. Write it down.

5. Consult a Startup-Savvy CPA

Your legal entity matters.

📍 LLC = no salary. C‑Corp = no draws. S‑Corp = watch your payroll rules.

Get this wrong, and you’re looking at back taxes, penalties, or worse.

Mark Zuckerberg’s $1 salary works because Meta’s structure does. Yours probably doesn’t.

Avoid These Common Pitfalls:

🚫 Deferred pay without documentation

🚫 No salary plan tied to milestones

🚫 Wrong comp type for your entity

🚫 Irregular, undocumented payments

This hit my inbox from a founder last week:

There’s one simple system that consistently punches above its weight: Profit First.

Think of it as envelope budgeting for founders who can’t afford to wing it.

Starter allocation if you're under $250K in annual revenue:

50% – Owner’s Compensation: Your take-home pay (post-tax)

30% – Operations: Software, rent, contractors, etc.

15% – Taxes: Put it aside—future-you will thank you

5% – Profit: Real profit. Not salary. Not fluff.

How it works:

→ All revenue goes into one main account

→ Twice a month, you move % allocations into separate accounts

→ Only spend from your ops account. If it’s not enough? Trim costs or raise prices.

Keep it simple. But consistent.

Want to level up?

📍 Do quarterly profit distributions (yes, even if they’re tiny)

📍 Revisit your percentages every 3–6 months

📍 Talk to a tax pro before locking it in—your entity type affects how this plays out

Send it my way, just hit reply.

So… how much should you pay yourself?

Just enough to stay focused, clear-headed, and in the game.

Not so much that you burn runway, or trust.

There’s no perfect number.

But you’ll get close when you’re honest about your bare minimum.

✅ Model it.

✅ Talk it through.

✅ Use the tools.

✅ Ask your CPA.

This isn’t about playing it safe.

It’s about playing it sustainably, with mindful optics.

And that? That’s the real moat.

See you next Thursday,

—Mariya

Hit reply and let me know. I read every single one (for real).

Hey, I’m Mariya, a startup CFO and founder of FounderFirst. After 10 years working alongside founders at early and growth-stage startups, I know how tough it is to make the right calls when resources are tight and the stakes are high. I started this newsletter to share the practical playbook I wish every founder had from day one, packed with lessons I’ve learned (and mistakes I’ve made) helping teams scale.

Mariya Valeva

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