Sign In

Andy Sparks

Executive Coach to Founders

Executive Coach to CEOs, host of Bedrock. Formerly: CEO at Holloway, COO at Mattermark.

Highlights

Aug 30 · linkedin

A lot of founders should be paying themselves more.

I say all of this with the recommendation that all founders cut back on luxuries and live a modest lifestyle while building their startup. You’ll need to do this in order to focus.

That said, there's a Goldilocks' zone between underpaying yourself and being fat and happy with a cushy salary.

In 2008, Peter Thiel said, "The lower the CEO salary, the more likely [the startup] is to succeed." Wise advice, but some founders take it too far.

Many founders torment themselves with low pay, often taking on credit card debt. This financial distress can make them less risk-tolerant and creative.

In the worst-case, a founder fails with stacked credit card debt, they can't start another company. They're like a poker player who's run out of chips.

What's the Goldilocks' zone? Thiel's 2008 average of $100-125K for funded startup CEOs is $145-$183K in 2024 dollars. Kruze Consulting reports $172K for seed-stage CEOs with $2M funding. But I see many below $100K or around $110-120K.

The real answer is to pay yourself enough to cover your expenses (keep them low!), stay out of credit card debt, and avoid financial stress so you can focus on your company (and keep your options open in case this one doesn’t work out). If you can do that for under $100K, great! If not, don’t screw yourself over.

Yes, starting and building a company requires financial prudence. But martyring will only distract you and lower your odds of success.

If you liked this post, subscribe to Essays by Andy, my monthly newsletter for startup CEOs, founders, and executives where I write about the practical and emotional challenges of building companies and lives you can be proud of.

Aug 29 · linkedin

When facing down some new challenge, founders often lose sight of what they’re capable of.

Think about this: you started a business. You made money. You survived years of chaos. You have the scars to show for it.

But now you’re worried some new thing will be the end of you? You’ve moved mountains, and now you’re worried about a few stones?

This challenge is just target practice, and you’re a marksman. This thing should be afraid of you, not the other way around.

Related Questions

What is Andy Sparks' current role?
Which show does Andy Sparks host?
Which companies did Andy Sparks co-found?
Where did Andy Sparks study and what degree did he earn?
Andy Sparks
Add to my network

Experience

Founder & Executive Coach at Sparks Industries
Co-Founder at Holloway

Education

Bachelor Of Arts, The Ohio State University

Location

San Francisco, CA, United States