Bharat Sangani: putting founder pay into the business plan
Founder pay appeared in Bharat Sangani's capitalization discussion as a cost to plan for at the start. He connected an unpaid founder's personal living expenses with pressure on the business.
The founder had a cost of living
Sangani described founders leaving their own salary out while family expenses continued. He said a business plan should include what the founder's work was worth. His account treated that payment as part of the resources needed to operate.
Two demands could draw on the same person
He discussed the difficulty of managing daily living expenses while running a business. In the talk, the salary example followed his warning about committing personal resources without a limit. Together they explain what he wanted founders to include in their initial capitalization thinking.
In Bharat Sangani's words
"If you start a business, first put your salary in" (Bharat Sangani, Family Office Club event talk introduced by Richard C. Wilson)
How to use this
- Include founder compensation when estimating the cost of operating the venture.
- State how personal living expenses will be covered during the planned startup period.
Questions and answers
Which cost did Sangani say founders often omit?
Their own salary.
How did he connect it with capitalization?
He discussed founder pay as part of the money needed to operate without ignoring personal living expenses.