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OP: You're one of the good ones, as far as I can tell. Please stay in the game. The real issue, I think, is that your job forces you to motivate people to take risks on your behalf and it feels like you're over-promising. A lot of success in business relies on motivating people (employees, clients, users) to help you succeed by promising what you'll be able to deliver if everything goes right... selling a vision, in other words. But your workers buy into that vision: they're willing to take mediocre (or even abysmal) compensation in return for the opportunity to be part of something great. You shouldn't feel bad about paying them poorly. If they wanted high-paying jobs, they'd take them. You should feel bad if you downgrade or abuse their loyalty, if you intentionally break your implicit promises to them (if you bust your ass and do the right thing and still fail, that's not an intentional breach). But you seem considerate enough that I don't see you doing that. As for investors and the low salaries they expect employees to take, that's a gnarly issue. It's a completely fucked system when the people who are risking more (their careers and opportunity cost) and putting more on the line (their time and work) are second-class citizens compared to the investors, who are just putting up money (that might not even be theirs, in the case of institutional agents). The real investors in any company are the founders and early employees who are doing the actual work. The money given by financial investors ought to be respected (it's a loan, not a gift) and they should certainly have enough say to ensure this, but it shouldn't give them the clout it does. It's one of those decrepit old systems whereby favor has more value than labor. It's not worth taking personally, and your employees don't resent you for being on the losing end of it. Also, as for what keeps that system in place, I think there's a bit of unacknowledged resentment of entrepreneurs by VCs. The VCs have the well-paid, cushy, powerful and easy jobs and are pretty much guaranteed by their path-of-low-resistance career track to be rich... but their jobs are a bit boring from a day-to-day perspective... lots of meetings and reviewing prospectuses (prospectii?) and shit like that. The entrepreneurs, as they see it, deserve less respect because they have the fun jobs. |
There are companies setup like this. It's fairly common for companies founded by people who have already made their money (as finance people, executives, previous entrepreneurs or early startup employees) to be self-funded. The problem is that if you require everyone to work for stock, you're cutting yourself off from a big portion of the talent pool, basically everyone who requires an income to live.
Investors get a share of the company in exchange for providing salaries for the people who can't live without them. If you don't need those salaries, you don't need the investors. But it seems like it's better to have the option to take that investment and pay people than it is to require that everyone work for no pay to get the startup off the ground.