What salary can I make when starting? How to evaluate its compensation in the business plan? Is it possible to plan to pay dividends? Extract from Guide to High-tech start ups in France by Olivier Ezratty.

This is the big question, especially for the young entrepreneur who starts without savings in life by creating his own company. It is not unreasonable to anticipate a salary of leaders in its business plan when they have no savings or personal means. In the case of former executives at the ASSEDIC (15 months for business creation), we can make the economy at the beginning of the existence of the company.

It is good that this salary is reasonable. Current salaries start at the start up are between one and two minimum wage. That’s when the company starts making revenue to be balanced and that leaders can look to increase beyond. The arrival of investments in venture capital can be increased a little before this stage, because the company has more resources and is consistent with the recruitment of employees to be paid at a price of market . After raising funds from VCs, the salary of the officer can rise to 3 to 5 minimum wage , which is best to incorporate an element of variable.

startup-dream

Can we pay with dividends? In general, not before five years. The prospect is distant enough for fast growing start ups. Dividends are mainly SMEs or large enterprises profitable making little growth. When a company strong growth, it needs to expand internationally, it must invest to finance it and bites it mechanically possible on dividends in an operating account. This especially as the real margin business is often much less than what is in the business plans for three years. The leaders of start ups first pay in wages, and then reselling them company during the “exit”. Knowing that this output is slow to materialize, and it occurs rarely a statistical point of view.