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Ask HN: Would you start a startup if the upside was limited?

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Ask HN: Would you start a startup if the upside was limited?

#1

Post by adamzerner »

I heard that Switzerland is voting to implement a system where CEO's could only make 12x that of the company's lowest paid employee. They would also be implementing a system where every citizen is guaranteed roughly $22k/year, regardless of employment (I might not have all the facts correct).

Regardless, my question is if you were capped at $500k/year knowing that you would have this $22k/year safety net, would you still start a startup?

EDIT: I'm trying to ask whether a moderate upside - that is roughly equivalent to making $500k/year - would be enough to motivate most people to start startups. The Switzerland thing was just what got me thinking. DH5 people!

Re: Ask HN: Would you start a startup if the upside was limited?

#5

Post by gexla »

Start-up founders don't get rich from salary, they get rich from owning the company (shares.)

Here is a list of people who have employed themselves for one dollar.

http://en.wikipedia.org/wiki/One-dollar_salary

I'm guessing that people like Warren Buffet and Mark Zuckerberg spend surprisingly little money for their day to day living expenses. You don't see these guys driving around super cars, sporting a lot of bling, rolling with an entourage and building the largest mansions they can afford.

Re: Ask HN: Would you start a startup if the upside was limited?

#8

Post by adamzerner »

gexla wrote: post #5

Start-up founders don't get rich from salary, they get rich from owning the company (shares.) Here is a list of people who have employed themselves for one dollar. http://en.wikipedia.org/wiki/One-dollar_salary I'm guessing that people like Warren Buffet and Mark Zuckerberg spend surprisingly little money for their day to day living expenses. You don't see these guys driving around super cars, sporting a lot of bling…

I'm trying to ask something along the lines of "if the upside was capped at $500k/year". So you could consider that equity, salary, perks etc.

I'm trying to ask whether or not that type of moderate upside would be enough for most people to start startups.

Re: Ask HN: Would you start a startup if the upside was limited?

#9

Post by moox »

To me a startup isn't about the money, but introducing my idea to the world. The idea of satisfying a need is enough.

That being said, the money is still a great incentive since you're taking a huge financial and personal risk, but you can still live pretty damn well with $500k/year.

Re: Ask HN: Would you start a startup if the upside was limited?

#10

Post by zsstor »

gexla wrote: post #5

Start-up founders don't get rich from salary, they get rich from owning the company (shares.) Here is a list of people who have employed themselves for one dollar. http://en.wikipedia.org/wiki/One-dollar_salary I'm guessing that people like Warren Buffet and Mark Zuckerberg spend surprisingly little money for their day to day living expenses. You don't see these guys driving around super cars, sporting a lot of bling…

Exactly. Given this system, there might actually be more incentive to create startups, as earning potential from a traditional job is limited.
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